In order to improve the lives of Chadians, the 2021 Finance Bill (PLF) proposes tax changes. Here are a few. The Minister of Finance and Budget, Tahir Hamid Nguilin, presents the PLF 2021 in front of the elected representatives on December 30. It was following the broad fiscal policy guidelines of September 14, 2020 and the desire to improve the lives of Chadians that these new tax provisions were formulated in the 2021 Finance Bill.
The 2021 PLF also takes into account the concerns of the private sector, particularly those relating to the agro-food industry and the substitution of imports by local productions. “In this dynamic, the promotion of the employment of young people, people with disabilities and farmworkers, support for agriculture and the local soap and oil and plastic products industry and the continued fight against the pandemic and its economic, health and social consequences as well as the effective establishment of toll-free telephone roaming between the CEMAC and G5 Sahel countries ”, declared the head of the finance department to the National Assembly.
Under the support and economic recovery, it is proposed to provide a tax incentive for companies operating in the fields of agriculture, livestock, renewable energies; VAT exemption on fertilizers, pesticides and seeds; exemption from the rental value tax for agro-pastoral enterprises operating in rural areas; the 25% reduction on the MFI basis for agro-pastoral enterprises in rural areas; VAT exemption on machinery and equipment intended for production and agro-pastoral processing.
As part of the job creation incentives, the government is offering tax and employer exemptions on the recruitment of young graduates, workers in the agro-pastoral sectors and people living with disabilities.
With regard to improving the business climate, tax relief on electronic money transfers (mobile money) is planned to promote financial inclusion; the reduction in transfer rights for land titles; details on taxpayer guarantees during tax audits; clarification on customs control regimes and details on the right of appeal and its modalities of application in customs matters.
In line with support for sectors affected by the pandemic and the fight against it and its consequences, the 2021 PLF proposes the renewal of customs exemptions relating to essential products; the renewal of exemptions from customs duties and taxes on all medical products and equipment involved in the fight against Covid-19; the institution of a 25% reduction on the basis of the MFI for companies in the hotel sector; maintaining the measures to reduce the general discharge tax (50%) and the downward adjustment of the license rate from 0.5% to 0.35% for all taxpayers.
As regards securing tax revenue, the requirement of tax clearance is planned in the procedure for initiating and paying public contracts by public establishments; the requirement of the NIF during any industrial and commercial operation; the extension of the scope of the 4% withholding tax and the clarification of the transaction value.
Finally, economically speaking, the 2021 PLF is based on the main assumptions, namely:
- Oil production of 147,397 barrels / day against 142,075 barrels / day in 2020;
- A price of Brent at 44.0 US dollars per barrel against 40.7 US dollars per barrel in 2020;
- A discount of 3 US dollars per barrel;
- A transport cost of 7 US dollars;
- An exchange rate of 585.4 FCFA for 1 US dollar.
Debates are open to allow deputies to amend this 2021 finance bill before its adoption.
