The economic challenges linked to the multiplication of border taxes in the Democratic Republic of Congo (DRC) are at the heart of the news. Indeed, this situation has a negative impact on the business climate in the country, prompting criticism from economic actors.
To remedy this problem, the Congolese Minister of Finance, Nicolas Kazadi, proposed during the last Council of Ministers a draft decree aimed at consolidating the perceptions made during the importation of food products for mass consumption in the DRC.
Nicolas Kazadi emphasizes in his briefing note the excessive and confiscatory aspect of import duties, taxes and levies, which have a detrimental effect on selling prices and therefore on the purchasing power of the population. In addition, some levies are made without effective compensation or legal basis, which accentuates the problems related to taxes at the border.
In order to remedy this situation, the Minister worked on the construction of a model for consolidating perceptions, based on three geographical areas: Matadi, Lufu and Kasumbalesa/Goma. This standard model will make it possible to fairly distribute the levies between the various services and public establishments concerned.
To avoid a multiplicity of rates depending on the CIF value of imported products, the standard model takes into account the highest CIF value among five basic necessities: horse mackerel, dried and salted cod, chicken, sugar cane or beetroot, rice and vegetable oil.
The draft Decree therefore aims to consolidate in a single collection the levies made by the various public services and establishments, for the benefit of the Public Treasury, the provinces and the authorized public establishments. The rates of this single collection will be modulated according to the period of suspension of VAT, geographical areas and modes of delivery, whether by sea or land.
This initiative by the DRC government aims to introduce a more flexible policy on border taxes, promoting transparency and reducing the burden on importers. This will also support the improvement of the business climate and promote the country’s economic development.
In conclusion, the draft Decree proposed by the Minister of Finance of the DRC aims to face the challenges posed by the multiplication of taxes at the border. By consolidating perceptions and modulating rates, this initiative will help improve the business climate and support the country’s economic development