Recent reform steps
The main measures taken by Benin since 2017 to enhance domestic revenue mobilisation are as follows:
- Setting up a platform between the Tax Administration and the Directorate-General of Customs and Indirect Taxation to exchange information on imports;
- Implementing an integrated tax management system that was developed using modern technology (SIGTAS: integrated management system for taxes and similar payments) in the division responsible for large corporations and for the benefit of medium-sized companies;
- Implementing electronic procedures (e-declaration and e-payment for large and medium- sized companies);
- Rolling out the Certified Electronic Invoicing Machines (MECeF) to issue standardised invoices.
Progress achieved
Since 2017, tax revenue in Benin has increased significantly, with a growth rate of 102% measured on 31 December 2018. In addition, taxpayers spend less time at tax centres fulfilling their reporting and payment obligations through digitised and simplified procedures.
Outlook: DRM priorities in 2019
Aware of the significant challenges Benin faces in improving its operations, providing qualitative services to taxpayers and increasing the level of tax revenue, the Tax Directorate authorities have developed a strategy for building their capacity under the Programme for Growth and Sustainable Development (PC2D). In 2015, the Tax Directorate developed a Strategic Orientation Plan (POSAF) for the PC2D element that relates to mobilising tax revenue. This was supplemented in 2017 with the three-year Plan to Improve Tax Compliance (PACF), developed with IMF assistance.
Priority Activities
- Use electronic invoicing machines
- Train IT specialists in data warehouse management and business intelligence
- Broaden the scope of exchanges with other administrations and public bodies
- Strengthen the analysis and use of tax information
- Strengthen the role of the Surveys, Information and Risk Analysis Unit
- Promote taxpayers’ participation in voluntary consent to tax
- Adopt a communication and taxpayer services policy in line with the expectations of each taxpayer segment
Expected outcomes
- Increase VAT receipts
- Improved access of operational services to directly usable data
- Reporting of false estimations of taxable base and improvement of revenue and tax compliance
- Improved tax compliance
- Defined service standards
Ensuring policy coherence for development
Main approaches to ensure policy coherence for development involve the adoption of a unified regulatory framework for public-private partnership operations, the modernisation and professionalisation of the public procurement system, improvements in budgetary transparency and tax measures that encourage private investment, and complementary measures to improve the business environment.