(Togo First) - Adoyi Esso-Wavana Ahmed (photo), tax commissioner of the Togolese revenue office (OTR), product of the merger between tax and customs in 2014, provides an insight on various measures undertaken by his administration as well as upcoming ones. OTR has considerably helped boost the country’s tax earnings, recalling that these were barely above CFA400 billion in 2013.  

Togo First : OTR’s current focus is to achieve tax compliance. How exactly does it plan to do that?

ADOYI Esso-Wavana Ahmed (AEA): Considering that Togo’s tax system is based on self-assessment, OTR’s strategy is to promote a tax culture that allows people and businesses to adhere to its activities. The office will focus on teaching businesses about their declaration and payment obligations, as well as about tax and custom procedures. Additionally, the office intends to regularly collect data on tax and custom revenues, and continue raising citizens’ awareness concerning tax’s importance. The main goal is to get businesses and individuals to spontaneously declare and pay their taxes.

Togo First : It’s been three years since the tax and custom offices merged, in 2014. What is your review of OTR’s activities since then?

AEA : Indeed, since its creation in 2014, four years ago, OTR has produced some very encouraging results. For example, as compared to 2013, tax revenues soared by 39.5% in 2017. Also, tax revenue, which is the proportion of taxes in GDP, has exceeded 20% over the period. This is a reference in the region. All these achievements are attributed to the various reforms implemented as a result of the merger.

Togo First : Fighting corruption is part of the office’s missions. What measures are taken in this regard and what are Togo’s achievements in this framework?

AEA : OTR has done everything to develop a culture of integrity and fight against fraud and corruption. Various actions taken to fight corruption mainly consisted putting in place modern tools for prevention and investigation. Besides, the office wish to get each of its agent involved in the fight against corruption. I would like to remind that at OTR, we have a department that fully dedicates to fighting and preventing fraud and corruption.

We have also invested in programs that align with this objective, with all the tax system actors, and also to improve partnership between local and international partners such as CENTIF, the High Authority for Prevention and Fight against Corruption and Related Offenses, Anti-Corruption Maritime Network (MACN), the U.S. embassy near Togo, etc.

Togo First : Last year, the government started implementing a battery of measures for tax relief. How did this measures impact tax revenues?

AEA : These tax relief measures include :

• 10% cut on VAT (art 323 CGI, article 4 LOFI 2017) for commodity basket, affecting a number of products and services ;
• VAT exemption for sale and import of mobile handsets and IT equipment for end-users ;
• VAT reduction for basic commodities ;
• VAT exemption for car leasing activities ;
• Reduction of corporate tax from 29% to 28%.

Among these measures, those aiming to bring down prices of commodity basket did not have the expected effect, they did not fall. This led the government to revise some of these measures in 2018.

Meanwhile, measures aiming to ease SME’s access to funding and investments will in the medium term help boost the economy and at the same time make SMEs more competitive. They will lead to the broadening of tax base, thus contribute to a greater mobilization of taxes.

Togo First : Despite the many reforms initiated by OTR, some still claim it is discouraging  small businesses. What do you think of this?

AEA : Since OTR started operating, many actions and measures were implemented to benefit small businesses. These include:

• Sensitization of various companies;
• Public sensitization in markets ;
• A reform to ease access to financing;
• Reduction of fees for property access;
• Amendment of rules governing small businesses, with exemption of business tax during first year of activity ;
• Pedagogic visits to listen and answer issues of small taxpayers.

All these measures are paired with training workshops and open houses that back the various actions taken by the Delegation in charge of Informal Sector’s Organization (DOSI) to benefit small businesses. 

This year, an event was held to reward best taxpayers. Yet, there is more to do and OTR is well aware of that.

Togo First : This year’s State budget is higher. This implies, supposedly, more tax revenues, and falls in line with government’s goal to reduce its deficit and depend less on debt. Last year however, forecast for taxes revenues was scaled down. Do you think 2018 would be different, especially in the actual context marked by a political crisis?  

AEA : OTR trusts that the government will do what is needed to calm tensions, providing the required context for its development. This said, we will proceed with our activities.  

Togo First : What are OTR’s next projects ?

AEA : OTR main upcoming projects are :

• Promoting tax compliance;
• Promoting private sector;
• Modernization of management tools and procedures ;
• Reforming land sector;
• Simplifying general tax code ;
• Fighting fraud and corruption;
• E-payment;
• Mobile payment;

Another goal is also to improve collaboration between OTR and its partners such as local communities, public treasury, private sector, civic society, national documentation office, trade court’s registrar, CNSS, PAL, mobile operators, etc.

Interview by Fiacre E. Kakpo