October 2018: CowaterSogema presents its recommendations for streamlining the DRC’s tax system
CowaterSogema has recently submitted a report to the Ministry of Finance of the Democratic Republic of Congo aiming to improve the national and provincial tax system so that it can meet the requirements of the country’s economic development.
This study, conducted with the administrations and economic players of the Kinshasa-Matadi corridor, has produced several findings and recommendations aimed at improving the DRC’s central and provincial tax system.
Based on good tax practices relevant to the DRC, the study proposed, among other things, the streamlining of the various taxes collected by the country’s revenue authorities. Constitutional, institutional and administrative recommendations were also presented, including: the generalized implementation of one-stop shops, streamlining taxes and deductions at the Direction Générale des Recettes administratives (DGRAD), reducing the number of stakeholders involved in revenue collection, harmonizing tax procedures at the DGI, DGRAD and provincial authorities level, and establishing tax chambers at the competent court level to support genuine tax litigation.
As part of the study, a series of consultations were conducted with the public administrations of Kinshasa and Matadi, as well as with the Fédération des Entreprises du Congo (FEC), the Agence Nationale de la Promotion de l’Investissement (ANAPI) and several private companies. A survey using the World Bank’s “Doing Business” methodology was conducted to assess regulations that are favourable or unfavourable to economic activity. This has been transposed into an action plan that will serve as a roadmap to support the DRC’s business climate based on three pillars: a legal framework, institutional and organizational implications, and practical implementation procedures.
The results of the study were presented on June 6, 2018, before the media and representatives of the ministry of Finance, the ANAPI, the Cellule d’exécution des Financements en faveur des États Fragiles (CFEF), the FEC and other key players in this mandate.
The productive and rewarding collaboration between this project’s various stakeholders marks the first step in an energized and open business climate in the DRC.