Niger: Selected Issues
IMF Staff Country Reports, January 28, 2025
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Bibliographic details
- Published: January 28, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229000345.002
Tax revenue gap: magnitude and drivers
- The tax revenue gap reflects the difference between the actual tax revenue collected and the potential revenue for Niger's economic and institutional context.
- The tax revenue gap has been increasing since 2015 and reached 3.4 percent of gross domestic product in 2022.
- Primary drivers identified:
- Gaps in the collection of taxes on goods and services.
- Gaps in the collection of international trade taxes.
Policy recommendations to enhance revenue mobilization
- Rationalize value-added tax (VAT) exemptions and the reduced VAT rates on specific products.
- Reform excise taxes.
- Reform property taxes.
- Strengthen tax administration capacity.
- Address informality and enhance the ability to collect taxes from the informal sector.
- Improve governance to bolster revenue mobilization capacity in the medium to long term.
- Improve social acceptability through a well-thought communication strategy and mitigating measures.
- Improve transparency and accountability of institutions to gain support for revenue mobilization.
Implementation priorities and medium-term considerations
- Immediate priorities: rationalize VAT exemptions and reduced rates; strengthen tax administration.
- Medium- to long-term priorities: reduce informality, reform excise and property taxes, and improve governance and institutional transparency.
- Social and political considerations: combining technical reforms with communication and mitigation measures is essential to improve social acceptability.
Source: Niger: Selected Issues, IMF Staff Country Reports, January 28, 2025.
Content in this bundle
- Niger: Selected Issues; IMF Country Report No. 25/26; December 17, 2024