Senegal’s Ambitious Tax Reforms: A Path to Economic Sovereignty and Social Justice
In a bold move to strengthen itS economic sovereignty,Senegal’s government,under the leadership of Prime Minister Ousmane Sonko,has unveiled a complete fiscal strategy aimed at increasing tax revenues,reducing the budget deficit,and funding critical public services.During his General Policy Declaration (DPG) on December 27, 2024, Sonko announced plans to raise the tax pressure rate to 20%, up from the current rate of less than 18%. This ambitious target aligns with the convergence criteria set by the West African Economic and Monetary Union (UEMOA), which mandates member states to maintain a tax-to-GDP ratio of at least 20%.
Tax revenues, which account for over 95% of Senegal’s state income, are the backbone of the country’s annual budget. With pressing challenges such as infrastructure advancement, healthcare, and education, the government is resolute to broaden the tax base and optimize revenue collection. “We record a tax burden rate slightly lower than 18%, which remains below the convergence criterion of 20% set by the UEMOA. our commitment is to reach this threshold and maintain it sustainably,” declared Prime Minister Sonko.
A Renewed Vision for Tax Policy
The government’s fiscal strategy is rooted in two key pillars: efficiency and equity. By rationalizing tax expenditures, reviewing exemptions, and renegotiating international conventions, Senegal aims to create a fairer and more effective tax system. The appointment of Jean Koné as the new Director General of the Directorate General of Taxes and Domains (DGID) on January 8, 2025, underscores this commitment.Koné, a seasoned tax inspector, has been tasked with implementing structural reforms to boost domestic resource mobilization.
“We will do everything we can to meet these challenges and thus contribute to national development objectives,” Koné stated during an interview with Radio Futurs Médias (RFM). His mandate includes reintroducing taxation on incoming international calls, a move expected to generate notable revenue while addressing long-standing loopholes in the tax system.
The Yaatal Program: Broadening the Tax Base
One of the DGID’s flagship initiatives is the Yaatal program, launched in 2020 to enhance tax compliance and expand the tax base. The program’s slogan, “Yaatal natt teggui yokkuté,” translates to “The contribution of all for inclusive development” in wolof. It reflects the government’s ideology of fostering a culture of shared responsibility among citizens.
According to the DGID, the program was born out of an alarming observation: “Too few citizens participate in the tax effort, while every Senegalese demands the right to quality public services.” This lack of tax culture, coupled with perceptions of elitism in taxation, has hindered efforts to achieve tax fairness. By optimizing land management and encouraging voluntary compliance,Yaatal aims to bridge this gap and ensure that all citizens contribute to national development.
Media Sector Under Pressure: A Test of Tax Justice
The government’s push for tax compliance has not been without controversy. In 2024, Senegalese press companies faced a staggering tax debt of nearly 40 billion CFA francs. while former President Macky Sall canceled this debt and reduced broadcasting costs for audiovisual media, his successor, President bassirou Diomaye Diakhar Faye, has taken a firmer stance.
During a meeting with young reporters on July 5, 2024, Faye emphasized the importance of tax justice, stating, “The blackmail will not pass.” His management has frozen bank accounts and imposed administrative pressures on media companies, leading to growing tensions between the government and the press sector.
A Roadmap to Economic Sovereignty by 2050
Senegal’s fiscal reforms are part of a broader strategy to achieve economic sovereignty by 2050. By balancing tax performance with socio-economic impact, the government aims to create a fairer and more efficient tax system. Prime Minister Sonko has repeatedly stressed the need for sustained and inclusive growth, ensuring that the benefits of economic development reach all citizens.
Key Takeaways: Senegal’s fiscal Strategy
| Objective | Details |
|————————————|—————————————————————————–|
| Increase tax pressure rate | From <18% to 20%, in line with UEMOA standards |
| Reduce budget deficit | From >5% to 3% |
| Broaden tax base | Through the Yaatal program and rationalization of tax expenditures |
| Strengthen tax compliance | Reintroduction of taxation on incoming calls and review of exemptions |
| Address media sector tax debt | Firm stance on tax justice, with no debt cancellations |
Senegal’s journey toward economic sovereignty is fraught with challenges, but the government’s commitment to fiscal reform offers a promising path forward. By fostering a culture of shared responsibility and ensuring equitable tax policies, the country aims to build a stronger, more resilient economy for future generations.
What are your thoughts on Senegal’s tax reforms? Share your insights and join the conversation on how fiscal policies can drive inclusive development.
