Kinshasa, October 11, 2024 – In a context where digitalization continues to transform our systems, the NGO Afrewatch recently highlighted the importance of digitizing the tax system to strengthen the collection of taxes, duties and fees in the mining sector. This key recommendation emerges from an in-depth study on the efficiency of the mining revenue collection system, indicating in particular the pressing need to move towards a more proactive and transparent approach.
Jacques Kabulo, in charge of transparency at Afrewatch, highlighted the shortcomings of the current system, stressing that the existing tax declaration mainly relies on the good faith of taxpayers. This declarative approach leaves the door open to possible errors or manipulations, thus compromising the effective collection of revenues expected from the mining sector.
Since the revision of the mining code in 2018, the increase in mining production in the Democratic Republic of Congo should have translated into a corresponding increase in tax revenues. However, the results are not up to expectations, which raises crucial questions about the planning and management of mining revenues.
The study conducted by Afrewatch has highlighted the challenges related to the management of mining taxes, in particular the multiplicity of agencies involved in the collection process, which hinders the coordination and consistency of tax data. Inconsistencies can arise when taxpayers declare varying amounts depending on the state entities they are addressing, thus creating gaps in the tax system.
The call for the digitalization of the tax system in the mining sector is therefore of paramount importance. In addition to strengthening the transparency and traceability of payments, digitalization would allow for more efficient management of tax data, thus reducing the risks of errors, fraud and inaccurate declarations.
In conclusion, the transition to a digitalized tax system is an essential development to ensure the sustainability and profitability of mining revenues in the Democratic Republic of Congo. This transformation must be accompanied by strengthened collaboration between the different entities involved in tax collection, in order to guarantee harmonious and transparent management of revenues from the mining sector.