Togo’s Tax Revenues Rise 5.8% to CFAF258Bln in Q1 2025

Public finance

Tuesday, 24 June 2025 06:13

Togo’s Tax Revenues Rise 5.8% to CFAF258Bln in Q1 2025

(Togo First) - The Togolese Revenue Office (OTR) collected 258.06 billion CFA francs in tax revenue during the first quarter of 2025. This marks a 5.81% increase compared to the 243.89 billion CFA francs collected in the same period of 2024, according to figures from the Directorate General of Budget and Finance reviewed by Togo First.

Despite this positive trend, the amount collected by the end of March represents only 21.36% of the annual target, which is set at 1,208.36 billion CFA francs.

Driving Revenue Growth

The revenue increase is partly due to a rise in corporate income tax (IS) collections, which reached 31.47 billion CFA francs, up 15.31% from 27.30 billion in the same period last year. A broadened tax base has supported this trend.

Additionally, the introduction of a new tax on telecommunications and information technology companies (TETTIC) under the 2025 Finance Law contributed to the revenue growth. This levy, set at 5% of telecom operators’ pre-tax turnover, generated 1.30 billion CFA francs by the end of March 2025.

The tax authority attributes this performance to several structural reforms. These include implementing the revised ECOWAS Common External Tariff (CET) within the SYDONIA customs system, stricter territorial surveillance, and reinforced tax and customs controls.

In 2024, OTR mobilized 1,098 billion CFA francs in revenue. The target for 2025 is 1,208.36 billion CFA francs.

Esaïe Edoh

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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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.

PUBLIC PROCUREMENT (more info)

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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.