According to a detailed analysis reported by Sud Quotidien, Senegal is preparing to evaluate the economic and social impact of the tax advantages granted in recent years, in addition to the usual budgetary analyses. Between 2019 and 2022, this expenditure amounted to 2,232 billion FCFA, illustrating state generosity whose effectiveness remains to be proven.
Among the measures envisaged by the government, the rationalization of corporate tax exemptions, particularly in the cement sector, and the updating of the progressive income tax scale are priorities. The Prime Minister also emphasizes tax rebates intended to relieve the most disadvantaged consumers regarding the costs of water and electricity.
Furthermore, Senegal plans to revisit the bilateral tax conventions in force, of which there are eighteen to date, in order to combat tax fraud and evasion. In accordance with presidential directives, the country is expected to withdraw from agreements with tax havens and renegotiate the unfavorable terms of certain conventions, such as those concerning double taxation.
Ousmane Sonko, quoted by Sud Quotidien, underlined the importance of centralizing the derogatory measures scattered in different texts such as the Mining Code or the Telecommunications Code, to integrate them into a structured and complete General Tax Code.
In terms of taxation, particular emphasis will be placed on broadening the tax base while gradually lowering tax rates. The real estate, land and informal sectors, considered to have high potential, must be properly taxed to constitute a major budgetary lever. The return to the system for controlling and charging incoming calls, abandoned in 2012, is also among the priorities.
Senegal
