Social VAT at 8% to make basic necessities accessible in the Democratic Republic of Congo
The Ministry of Finance in the Democratic Republic of Congo has announced the institution of an 8% social value added tax (VAT) with the aim of making basic necessities accessible to as many people as possible. This measure aims to facilitate access to essential goods for the Congolese population.
According to Nicolas Kazadi Kadima, Minister of Finance, the objective of this social VAT is not only to grant tax advantages, but also to guarantee a substantial collection of revenue on consumer products. This tax applies both to imports and domestically, in order to cover both domestic and imported products.
The implementation of this tax will also make it possible to correct inequalities in taxation in certain sectors. For example, it introduces a customs duty rate of 0.5% for the artisanal export of gold, in order to fight against fraudulent exits of this product. In addition, it transposes the “excise duty” law with regard to plastic household items.
On a separate note, the Ministry of Finance also announced measures to discourage the consumption of tobacco and non-combustible nicotine products. These products will now be subject to customs duties of 20%, VAT of 16% and excise duties of 60%. The aim is to make these products more expensive in order to discourage their consumption, especially among young people, to preserve their future health.
In parallel with this announcement, the Director General of Customs and Excise, Bernard Kabese Musangu, wanted to raise awareness among users on the specificity of the customs tariff of import and export duties and taxes. He pointed out that the qualitative and quantitative analysis of this tariff has led to adjustments and new rates for certain products. It indicates that the finance law sets these different rates in appendix XX and that the goods concerned are subject to rates of 5%, 10% and 20% according to the tariff structure in force.
This decision to institute a social VAT at 8% and the revision of the customs tariff are measures aimed at optimizing the collection of tax revenue, correcting inequalities in taxation and encouraging responsible consumption. They are part of a broader vision to promote economic development and the protection of public health in the Democratic Republic of Congo