Taxation of the electricity sector and energy decentralization in the DRC: a crucial issue for development
Taxation of the electricity sector in the Democratic Republic of Congo (DRC) is the subject of a passionate debate within civil society. A coffee debate organized by the Coalition of Civil Society Organizations for the Monitoring of Reforms and Public Action (CORAP) recently brought together different actors around this issue.
During this event, a study carried out by CORAP and ACERD was presented, highlighting the challenges linked to taxation in the electricity sector. Since the liberalization of this sector in 2014, few significant investments have been made in the production of electrical energy in the DRC. This study highlights the obstacles linked to the applicability of the law and overtaxation, which hinder the development of the sector.
A guide on the decentralization and liberalization of the electricity sector in the DRC was also presented during the coffee debate. These documents aim to provide essential information to promote the development of the electricity sector in the country.
One of the main issues raised during this debate concerns the multiplicity of taxes levied by different ministries, such as Energy, Telecommunications, Interior, Environment, Health and Employment. This complex overtaxation raises questions about the collection and distribution of tax revenues, involving numerous actors at different levels of administration.
Another controversy concerns the energy consumption charge paid by end users. These taxes are already paid by companies in the sector, which then pass them on to prices. This double taxation raises questions about the fairness of taxation in the electricity sector and its impact on consumers.
Furthermore, the study revealed that many operators in the energy sector find themselves in default of payments to the State when tax deadlines are due. This situation has direct consequences on the population, particularly in terms of electricity supply for consumers with limited resources. It is therefore essential to rethink the current tax system in order to promote the development of the energy sector and guarantee access to electricity for all.
By liberalizing the energy sector, the Congolese state aimed to stimulate investments, but it must also assume its role in securing the supply of electricity for the population. This involves the establishment of a balanced tax system, promoting investments and guaranteeing fair prices for consumers..
In conclusion, the debate on taxation of the electricity sector and energy decentralization in the DRC is essential to ensure sustainable development of the energy sector. Fair and transparent tax reform is necessary to encourage investments and guarantee access to electricity for all Congolese. It is time to begin a real reflection on the taxation mechanisms in this key sector of the Congolese economy.