The importance of taxation for the electricity sector in the Democratic Republic of Congo
The question of taxation in the electricity sector in the Democratic Republic of Congo is a crucial issue for the development of this key sector of the Congolese economy. A recent study carried out by the Coalition of Civil Society Organizations for the Monitoring of Reforms and Public Action (CORAP) highlights the challenges facing the sector in terms of taxation.
According to this study, the current taxation in the electricity sector in the DRC is stifling and not conducive to the promotion of investments. Since the liberalization of the sector in 2014, very few major investments have been made in the production of electrical energy. Overtaxation and complex applicability of the law are identified as major problems hindering the development of the sector.
One of the points raised is the multiplicity of taxes collected by different ministries in the energy sector. This situation complicates tax collection and creates numerous actors involved at different levels. Additionally, the issue of energy consumption charges paid by end-users is controversial, as these taxes are already paid by companies who then pass them on to tariffs. This can cause payment difficulties for operators and jeopardize the energy supply for the population, particularly for low-income consumers.
The study also highlights the state’s responsibility for the security of energy supply for all consumers. Despite the liberalization of the sector due to budgetary constraints, the State must play an active role in guaranteeing equitable access to electricity. This requires a fair distribution of costs between the state and consumers, as well as investments in electricity infrastructure.
With a view to remedying these problems, CORAP has published a guide on the decentralization and liberalization of the electricity sector in the DRC. This guide will provide information and recommendations to promote a fiscal framework more favorable to the development of the sector and attract the necessary investments.
In conclusion, the question of taxation in the electricity sector in the DRC is a major issue which must be taken into account to ensure development and access to energy for all. It is necessary to review and adapt the current fiscal framework in order to encourage investments and guarantee a fair supply of electricity for the Congolese population. The publication of the CORAP guide constitutes an important first step in raising awareness among the stakeholders concerned and promoting reforms in this area, which is essential to the country’s growth.