Financial Crime World

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Burkina Faso’s Citizens Perceive Tax Officials to be Corrupt

A recent survey conducted by Transparency International Africa reveals that a significant majority of citizens in Burkina Faso perceive tax officials to be corrupt. The survey, which was conducted in 2015, found that 64% of respondents believed that tax officials were corrupt.

Despite the government’s efforts to offer tax incentives and breaks to companies investing in the country, including exemptions from value-added tax on certain equipment, the tax system is considered complex and burdensome by many businesses. The informal sector also remains a significant challenge for the government, with many small-scale entrepreneurs operating outside of the formal economy.

Addressing the Issue

To address this issue, the government has introduced a unique tax called the “contribution du secteur informel” (CSI), which applies to informal sector companies and other small enterprises with an annual turnover of XOF 15 million or less. However, companies that qualify for CSI tax status are prohibited from bidding on state tenders.

Corruption Risks Remain High

Despite efforts to combat corruption, the country still faces significant risks in several areas. The customs administration is considered a high-risk area, with many businesses reporting instances of bribery and corruption when dealing with customs officials.

  • Many businesses report instances of bribery and corruption when dealing with customs officials.
  • Journalists often face physical attacks, intimidation, and financial penalties for libel.

Positive Developments

However, there have been some positive developments, including the passage of legislation that eliminated prison sentences for press offenses and the resolution of a high-profile murder case involving an investigative journalist.

Civil Society Plays Important Role

Civil society organizations played an important role in pushing for greater transparency and accountability in government. Many domestic and international organizations operated without restriction, and the government was generally responsive to their views.

  • Civil society organizations pushed for greater transparency and accountability in government.
  • The media also played a crucial role in promoting transparency and good governance.

Conclusion

Burkina Faso still faces significant corruption risks, particularly in the areas of taxation and customs administration. While there have been some positive developments, more needs to be done to address these issues and promote greater transparency and accountability in government. Civil society organizations and the media will continue to play important roles in pushing for change and promoting good governance in the country.

Sources

  • World Bank & IFC: Doing Business 2017
  • Global Integrity: Africa Indicators - Burkina Faso 2016
  • Freedom House: Freedom of the Press - Burkina Faso 2016
  • Freedom House: Freedom in the World - Burkina Faso 2016
  • US Department of State: Investment Climate Statement - Burkina Faso 2016
  • US Department of State: Human Rights Practices Report - Burkina Faso 2016
  • Bertlesmann Foundation: Transformation Index - Burkina Faso 2016
  • Réseau National de Lutte Contre la Corruption (REN-LEC): Etat de la Corruption au Burkina Faso 2015
  • Transparency International: People and Corruption: Africa Survey 2015
  • World Economic Forum: Global Competitiveness Report 2014-2015
  • World Economic Forum: Global Enabling Trade Report 2014