Technical Assistance, Tax Reform (2009.2013)

Donor
Recipient
BF: TA DGI, Phase I (2009.2013). BF: Technical Assistance to the General Directorate of Taxes in Burkina Faso (Direction Générale des Impôts, DGI). The Directorate General of Taxes (DGI) with the General Directorate of Customs are the main authority to collect taxes in Burkina Faso. Whereas the DGI is responsible for taxes on income and profits of companies and individuals as well as domestic Value Added Taxes (VAT), VAT on imports are levied by the Directorate of Customs. Over 80% of direct domestic taxes levied by the DGI come from the 450 largest companies in the country . the rest of the economy contributes only to 20% of the taxes. This weak mobilization of domestic tax revenue makes the Burkinabe government heavily dependent on foreign aid, particularly aid budget to balance its budget without resorting to unsustainable debt. The International Monetary Fund (IMF) has identified a lack of resources (organizational, human and technical) of the DGI as a cause of the low pressure in Burkina tax. Indeed, due to these identified deficiencies, many taxpayers are able to partially or completely escape taxation. With the technical and financial partners, the Internataional Monetary Fund and the Burkinabe authorities, the DGI has developed a strategic plan which aims to strengthen its organization and operation to enhance its performance. Responding to a request from the Government of Burkina Faso, the State Secretariat for Economic Affairs (SECO) is supporting a project which aims to increase domestic tax collection rate by providing technical assistance in improving the informatic system as well as drafting of fiscal laws for companies.
Commitment
USD 0.00
Disbursement
USD 15400.00
Year
2015
Project Start Date
December 19, 2008
Project End Date
December 31, 2015
Project Region
Project Number
UR.00166.01.02
Project crsid
2012004271