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Sunday 20 June 2021
HomeNewsSurvey proposes drop in VAT in African Franc zone countries

Survey proposes drop in VAT in African Franc zone countries

A reduction in the rate of value added tax (VAT) in the franc zone in Africa
will have a positive impact on the economic growth of these countries, a survey conducted by the international foundation for development studies (FERDI) made available to PANA on Monday in Paris has concluded.

A reduction in VAT, presently fixed at 19% on average in Franc zone countries, should be accompanied by the expansion of the tax base, the survey said, adding that Franc zone countries should develop a watchdog mechanism for the effective application of common prices.

The survey also urged Franc zone countries to strengthen multilateral surveillance.

The Franc zone is made up of 14 African countries of the West African Economic and Monetary Union (UEMOA) and the Central African Economic and Monetary Community (CEMAC) that use the CFA Franc which benefits from a fixed rate with the Euro.


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