## Republic of Congo: Selected Issues

_IMF Staff Country Reports, January 27, 2020_

## Source details

**Canonical URL:** [Republic of Congo: Selected Issues](https://www.imf.org/en/publications/cr/issues/2020/01/27/republic-of-congo-selected-issues-48985)

## Other formats

- [Markdown version](/en/publications/cr/issues/2020/01/27/republic-of-congo-selected-issues-48985/index.md)
- [Structured JSON version](/en/publications/cr/issues/2020/01/27/republic-of-congo-selected-issues-48985/index.json)
- [Bundle manifest](/en/publications/cr/issues/2020/01/27/republic-of-congo-selected-issues-48985/bundle-manifest.json)

## Bibliographic details
- Published: January 27, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513528052.002

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### Summary
- The paper discusses reforms to generate higher revenues from the non-oil sector through measures to:
  - rationalize the tax code,
  - broaden the tax base, and
  - increase administrative efficiency.
- Reforms should be complemented by economic diversification policies that support non-oil growth and thereby expand the potential tax base.
- The paper reflects on lessons learned from other country experiences relevant for the Republic of Congo.
- The authorities should step up revenue mobilization as a key component of their medium-term fiscal strategy.

### Key policy recommendations and reform priorities
- Strengthen tax policy coordination and strategy:
  - The newly created Tax Policy Unit in the Ministry of Finance should reduce institutional fragmentation and facilitate the design, coordination and implementation of a medium-term revenue strategy.
- Address tax base erosion:
  - Urgently tackle erosion of the tax base generated by an excessive and discretionary use of tax exemptions that do not comply with existing laws and regulations.
- Improve tax administration and compliance:
  - Continue to focus on rationalizing the tax code and increasing administrative efficiency to recover tax arrears, including through the modernization of existing income tax systems.
- Complement fiscal measures with broader economic policy:
  - Implement economic diversification policies to support non-oil growth and expand the potential tax base.

### Findings and analytical emphasis
- Revenue mobilization from the non-oil sector is feasible through a package of tax code rationalization, base broadening, and administrative improvements.
- Administrative modernization is important for recovering tax arrears and improving compliance.
- Excessive and discretionary tax exemptions are identified as a key driver of tax base erosion and require urgent corrective action.
- Institutional fragmentation impedes coherent medium-term revenue strategy design and implementation.

### Subject coverage and keywords
- Subject: Consumption, Fiscal policy, Fuel prices, Import prices, National accounts, Price structures, Prices, Revenue mobilization
- Keywords: Africa, Congolese authorities, Consumption, CORAF, CR, diversification plan, Fuel prices, governance, governance reform, government, government website, Import prices, ISCR, price, Price structures, refinery price, retail price, Revenue mobilization, Sub-Saharan Africa, tax arrears

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## Content in this bundle

- **Republic of Congo: Selected Issues; IMF Country Report No. 20/27; January 3, 2020**
  - [Republic of Congo: Selected Issues; IMF Country Report No. 20/27; January 3, 2020 (Markdown version)](/-/media/files/publications/cr/2020/english/1cogea2020002.pdf.md){rel="alternate" type="text/markdown"}
  - [Republic of Congo: Selected Issues; IMF Country Report No. 20/27; January 3, 2020 (PDF)](/-/media/files/publications/cr/2020/english/1cogea2020002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2020/01/27/republic-of-congo-selected-issues-48985_