Title: “Social VAT in the DRC: making basic necessities accessible to all”
Introduction :
The Democratic Republic of Congo recently implemented an 8% social value added tax (VAT) in an effort to make basic necessities more accessible to everyone. This measure, announced by the Minister of Finance Nicolas Kazadi Kadima, aims to ensure the collection of revenue on consumer products and to correct the imperfections of taxation on certain goods. In this article, we will explore the impact of this social VAT and its importance in the country’s economic policy.
Promote the accessibility of basic necessities:
According to the Minister of Finance, the main objective of social VAT is to make basic necessities accessible to as many people as possible. By applying an 8% VAT rate on imports and domestically, this measure aims to reduce the cost of these essential products for Congolese consumers. It is important to emphasize that the social VAT is not limited to tax advantages, but also contributes to the consequent collection of revenue on these products.
Correcting taxation imperfections:
In addition to the objective of accessibility, the social VAT makes it possible to correct the imperfections of taxation on certain goods. For example, it introduces a customs duty rate of 0.5% for the artisanal export of gold, which aims to fight against the fraudulent exits of this precious product. In addition, this measure transposes the “excise tax” law, which concerns household economy plastic items. Thus, the social VAT plays an essential role in the regulation of trade and the protection of the economic interests of the country.
Discourage the consumption of tobacco and nicotine products:
Another dimension of the social VAT in the DRC is the higher taxation on tobacco and nicotine products. By increasing customs duties, VAT and excise duties on these products, the government aims to make their consumption more expensive. This measure aims to discourage tobacco consumption and protect Congolese youth against the dangers of these harmful products.
Conclusion :
The implementation of the social VAT in the Democratic Republic of Congo demonstrates the government’s commitment to making basic necessities accessible to all. This measure aims to ensure the collection of revenue on mass consumption products and to correct the imperfections of taxation. By discouraging the consumption of tobacco and nicotine-based products, it seeks to protect Congolese youth. Social VAT is therefore an essential tool in the country’s economic policy, aimed at promoting equity and growth