Title: “Social VAT in the DRC: making basic necessities accessible to all”
Introduction :
In order to make basic necessities accessible to as many people as possible in the Democratic Republic of the Congo, a social value added tax (VAT) of 8% has been instituted. According to the Ministry of Finance, this measure aims both to facilitate access to essential products and to ensure a substantial collection of tax revenue. In this article, we will explore the implications of social VAT and its role in taxation policy in the DRC.
I. Social VAT: a measure to make basic necessities affordable
Finance Minister Nicolas Kazadi Kadima points out that the 8% social VAT is intended to make basic necessities affordable for everyone. This tax applies both to imports and domestically and aims to facilitate access to essential products for Congolese citizens. It is also specified that this measure aims to collect revenue on so-called “sensitive” products, that is to say those with high consumption.
II. Correction of tax imperfections and the fight against fraud
The social VAT also makes it possible to correct the imperfections of taxation, in particular in the sector of artisanal production and the export of gold. By instituting a customs duty rate of 0.5%, it is possible to fight effectively against fraudulent outflows of Congolese products. By applying the principle that the yield of the tax is inversely proportional to its rate, it is possible to collect substantial tax revenue while discouraging fraud.
III. The taxation of nicotine products to preserve youth
Another measure put in place is the taxation of nicotine products, such as tobacco and non-combustible electronic cigarettes. These products are now subject to 20% customs duties, 16% VAT, 60% excise duties and 20% special excise duties. This taxation aims to make these products more expensive and thus discourage their consumption, especially among young people, who represent the future of the country.
Conclusion :
The implementation of social VAT in the Democratic Republic of Congo aims to make basic necessities accessible to all. By targeting so-called “sensitive” products and fighting against fraud, this measure contributes both to facilitating access to essential goods and to generating substantial tax revenue. In addition, the taxation of nicotine products aims to preserve health and Congolese youth by discouraging their consumption. The social VAT is therefore part of a balanced taxation policy that is concerned with the well-being of Congolese citizens