Africa-Press – Cape verde. The Cape Verdean Government announced today that tax collection in the first quarter increased by 11.7% compared to the same period in 2023, thanks to the tax reform and the computerization of services.
The value amounted to 12.8 billion escudos (116 million euros) and corresponds to almost a quarter of the target for collecting all tax revenues in 2024, exceeding forecasts.
“The increase in tax revenues compared to the same period last year is evident across the board”, reads a statement in which the Government highlighted the 35% growth in the collection of Value Added Tax (VAT).
The largest contributions to VAT were from the accommodation and catering, communication, manufacturing industries, financial activities and insurance sectors.
On the other hand, despite the decrease in imports, customs revenue grew by 3.6%.
The tax and customs reform project, with computerization of services, “translates into an increase in the collection of tax revenues”, promoting “voluntary compliance, on the part of the taxpayer, with tax compliance, and combating tax evasion”, he concluded.
The results are in line with the execution achieved in 2023 and highlighted by the International Monetary Fund (IMF) in statements to Lusa, on Monday.
“[Cape Verde’s] budgetary situation improved significantly last year, with a budgetary surplus in the primary balance of 2% of GDP, the highest in the last 20 years,” said Thibault Lemaire, an IMF economist who coordinated the report on Africa. sub-Saharan.
“Budget performance was boosted by increased revenue from tax measures and the under-execution of public investment,” he added.
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