### Mali: towards opacified taxation and its social challenges
On March 5, 2024, Mali took a significant step on the path of increased taxation, with the entry into force of new taxes on telephone credit and mobile money transactions. Although these measures aim to finance a new support fund for infrastructure projects, especially in the energy sector, they ask serious questions about the transparency and the use of the funds collected. To understand the implications of this tax reform, it is essential to analyze not only its economic impact, but also the social context that surrounds this situation.
#### An increase in tax burden: for whom?
The 10% increase on the purchase of telephone credit and 1% on Mobile Money transactions, although justified by the need to finance essential infrastructure, constitutes an additional burden for the Malian population, already affected by a persistent economic and social crisis. Indeed, these taxes represent a direct reduction in purchasing power: on a map of 1,000 CFA francs, 100 francs are absorbed. This only increases the difficulties for households, especially for the most vulnerable who already find it difficult to complete the end of the month.
This tax also challenges organizations like the NGO Oxfam, which has often pleaded for fair taxation. Looking at the Instat data, the Malian mediating income is estimated at around 70,000 CFA francs per month, which makes each tax increase all the more heavy to wear. Consumers, already overwhelmed by rampant inflation and regular electricity cuts, see their ability to access communication services, however essential in an increasingly digital world, compromise their daily life.
#### Support fund: towards a doubtful management
The presidential decree instituting the support fund aroused a wave of criticism for its opacity. Established under the supervision of the presidency, its administration is entrusted to a steering committee without real popular representation, thus giving the impression of a closed function. This approach raises concerns regarding the quality of governance: management funded by taxes collected from citizens should be subject to rigorous control mechanisms in order to ensure that taxpayers’ money is used judiciously.
Another crucial question concerns the absence of explicit criteria concerning the projects to be financed. If projects are deemed urgent or essential for the State, they could very well escape any form of transparency, making the framework conducive to possible abuses. This dynamic recalls the practices observed in other African countries where the opacity of certain institutions has led to a waste or an appropriation of public resources by political elites.
#### Reflection on State Social Responsibility
To mitigate the effects of these new taxes, several votes, including those of consumer associations, called for a reduction in the lifestyle of the state, in particular by adjusting the wages of the presidency and the government. This proposal highlights a fundamental challenge that developing countries must take up: how to establish a balance between the need to finance development projects and the desire to lighten the tax burden of citizens?
Studies carried out by international organizations highlight that a reduction in corruption and more effective management of public resources would have a significant impact on the well-being of citizens. Instead of increasing taxes, greater empowerment of state officials, via structural reforms and a culture of responsibility, could offer a more viable alternative.
#### A historical and compared perspective
The economic history of Mali, marked by cycles of crisis, development and conflicts, is enlightening on current challenges. As a comparison, countries like Ghana have succeeded in establishing more transparent tax systems over the years, integrating civil society into the decision -making process. Such an approach, promoting the participation of citizens, could make it possible to reconnect between the State and the population, a key factor for the successful implementation of any tax reform.
#### Conclusion: a call for vigilance and mobilization
While Mali is committed to this path of new taxation, the vigilance of citizens and actors of civil society is essential. It is imperative that these are not only asking for accounts on the use of new taxes, but also ensure that economic development is accompanied by real improvement in quality of life for all. The establishment of control and transparency mechanisms must become a priority so that the support fund fulfills its role without the Malians having to undergo the consequences of administrative opacity. The development of a culture of tax liability is not only desirable, but necessary for the future well-being of the country.