Ousmane Sonko announces a bold tax reform to transform the Senegalese economy. Between broadening the tax base and fighting against tax evasion, the bet is ambitious, but risky.
Faced with an overwhelming economic situation, Senegalese Prime Minister Ousmane Sonko announced an ambitious tax reform during his general policy statement to deputies in Dakar. According to him, the country’s economy remains locked in a “colonial model” which limits its development. This reform aims to broaden the tax base and rationalize exemptions in certain sectors, such as cement factories. The main objective? Increase the tax burden rate to 20% and guarantee a more equitable distribution of contributions.
A fierce fight against tax evasion
To achieve these objectives, Ousmane Sonko undertakes to withdraw Senegal from all bilateral conventions involving tax havens and to renegotiate agreements unfavorable to the country. This initiative intends not only to strengthen the economic sovereignty of Senegal, but also to ensure a better contribution from multinationals, often singled out for their low participation in public financing.
In addition to broadening the tax base, the Prime Minister wants to update the income tax scale, a project which promises to reduce inequalities. Furthermore, a reform of the customs code and a rationalization of State charges are also planned to optimize internal resources.
A sovereign vision for a successful future
Beyond tax reform, Ousmane Sonko defends a broader vision, that of a sovereign and competitive Senegal by 2050. This involves the closure of foreign military bases on the territory and ongoing discussions with the BCEAO to reform the CFA franc, symbol of a profound change in the region’s economic and monetary relations.
While this reform raises great hopes, it also raises questions about its feasibility. Economist Seydina Oumar Seye warns that the success of these measures will require considerable efforts on the part of the Senegalese, particularly in terms of financing and acceptance of new tax burdens.
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