While Togo is increasingly successful in mobilizing tax revenue, it must also be said that most of its revenue is concentrated on a small number of tax instruments. In fact, in 2017, the top 5 taxes (out of 20) accounted for 88.5% of the country’s revenue, according to a recent World Bank study.
In order of importance, the Togolese tax system has recorded in its Top 5: VAT (accounting for 43.1% of revenue), Customs duties (16.6%), Corporate income tax (11.4%), Excise duties (6.6%), and Personal income tax IRPP (6.4%). By way of comparison, the sixth instrument (registration fees) accounts for only 2.6% of revenues.
Moreover, for the same year, the other taxes had an even lower contribution, in particular : Wage Taxes (0.7% of revenues), Turnover Tax (0.7%), Miscellaneous Tax Revenues (0.5%), Gambling Products Tax (0.3%), and Property Tax on Built Property (0.2%). The TPU, which will be patented as of this year 2019, represented only 0.1% of tax revenues.
15th in the world and 1st in Africa on the Doing Business (DB) 2020 indicator, Togo is continuing its reform dynamic, with new reforms .
EXECUTION OF CONTRACTS
Still at the bottom of the Doing Business ranking in terms of contract execution, Togo, buoyed by its drive to improve the business environment, has worked twice as hard this year to make a qualitative leap in this choice indicator. Numerous reforms to the contract performance indicator and the legal framework.
Better than in the past, Togo has significantly reformed the “Cross-border trade” indicator by adopting a battery of measures, with the digitization of acts and procedures as a backdrop. These reforms mainly concern dematerialization and reduction of delays in import and export.
Rising from 133rd place to 127th place on the “Obtaining a building permit” indicator in the 2020 Doing Business issue, Togo wants to repeat the same feat in the next edition of the global benchmark report on the ease of doing business. A battery of reforms has been set in motion this year in this direction.
Togo has been making steady progress in Doing Business on this indicator for the past two years, and this year it has once again achieved a ranking performance, as evidenced by the new reforms implemented to make it easier for businesses to connect to electricity and water.
Drastic reduction in delays, significant leap in Doing Business, the Transfer of Ownership indicator is the one on which Togo has improved the most since 2018. Still at the bottom of the rankings just two years ago, the country is now aiming for the top of Africa. To take Rwanda by storm. And to achieve this, there is no respite. A new series of reforms was launched in 2020 to keep the country on the upward trend.
PAYMENTS OF TAXES AND TAXES
In line with the improvement of its business environment, Togo has introduced major reforms in the payment of taxes. From the replacement of certain taxes to the elimination of others through exemptions, the country has only one objective: to offer the most attractive fiscal framework to investors and economic operators. All this, against a backdrop of tele-taxation.