The institution of an 8% social value added tax (VAT) in the Democratic Republic of Congo aims to make basic necessities more accessible to as many people as possible. This was announced by the Ministry of Finance in a recent press release.
According to the Minister of Finance, Nicolas Kazadi Kadima, this social VAT applies both to imports and domestically. Its role is not limited to granting tax advantages, but also aims to ensure a consistent collection of revenue on consumer products.
This measure also includes the correction of imperfections in the taxation of gold, by setting a customs duty rate of 0.5% for artisanal production for export. This makes it possible to fight more effectively against fraudulent exits of products from the country.
In addition, the Ministry of Finance stresses that the consumption of tobacco and nicotine products will now be subject to customs duties of 20%, VAT of 16% and excise duties of 60% and an additional 20%. This measure aims to discourage their consumption by making them more expensive, in particular to protect young people.
At the same time, the Director General of Customs and Excise, Bernard Kabese Musangu, raised awareness among users of customs services on the specificity of the customs tariff, an important tool for customs taxation and the regulation of international trade in the DRC. He specifies that certain modifications have been made to the tariff to take into account technological developments and new products introduced on the international market.
In conclusion, the institution of a social VAT at 8% in the DRC aims to make basic necessities more accessible and to correct the imperfections of taxation. This measure is accompanied by new provisions to deter the consumption of tobacco and nicotine products