Togo’s 2026 Tax Take: VAT And Customs Lead The Forecast

Public finance

Tuesday, 20 January 2026 12:51

Togo’s 2026 Tax Take: VAT And Customs Lead The Forecast

(Togo First) - Togo expects to collect 1,338.9 billion CFA francs in tax revenue in 2026 under the budget law. As in previous years, most of the projected revenue comes from a small number of high-yield taxes.

Indirect taxes account for the largest share, led by value-added tax (VAT) and customs-related levies. Domestic VAT is projected at 189.4 billion CFA francs, while customs VAT is expected to reach 351.2 billion.

Customs duties and related taxes are the second-largest source, reflecting Togo’s role as a regional transit hub and gateway for goods bound for inland West African markets. Authorities forecast these at 211.5 billion CFA francs, keeping trade-related taxes among the main drivers of revenue for the Togolese Revenue Office (OTR).

Corporate tax ranks third, projected at 201.1 billion CFA francs. Tax on wages and salaries, withheld at source, also provides a steady stream of revenue supported by growth in formal employment.

Other taxes make up a much smaller share. Property and real estate taxes are expected to total 3.7 billion CFA francs in 2026, while registration and stamp duties are projected at 18 billion. Other revenues, including fines, penalties and sector-specific taxes, are estimated at 2.28 billion CFA francs.

Non-tax revenues are projected at about 88.9 billion CFA francs in 2026 and include royalties, proceeds from state holdings, dividends from public enterprises and administrative fees. Mining royalties are expected to reach 10.38 billion CFA francs, while airport-related royalties are estimated at 3.97 billion.

Grants and external support are projected at 166.9 billion CFA francs, mainly from international institutions including the World Bank and the International Monetary Fund.

Separately, the government plans to raise 463.5 billion CFA francs on the WAEMU regional debt market, around 17% of the annual budget.

Overall, tax revenue is expected to account for 48.7% of the 2026 budget, set at 2,751.5 billion CFA francs, up 14.8% from the previous year.

Ayi Renaud Dossavi

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

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In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

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REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

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PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.