DRC to Introduce two new Laws to Increase Tax Revenues from the Oil industry to $450M Annually
The decree on eligibility criteria and methods for calculating losses and shortfalls (being finalized) and the one on the methods for fixing the price of diesel sold to mining companies in the southern zone (signed recently) will allow the Congolese Government to save nearly 157 million on the oil subsidy and the improvement of the taxation of the oil sector for an envelope estimated at 450 million USD/year, or 4% of the current revenue of the Central Power Budget.
The Acting Minister of the National Economy, Nicolas Kazadi, indicated, during the meeting of the Council of Ministers on Friday March 3, 2023, that the audit of the price structure of petroleum products (SPPP) is part of within the overall agenda of reforms initiated under his authority, especially in the area of fuel price regulation.
And this, in accordance with the instructions of the President of the Republic at the end of the 53rd meeting of the Council of Ministers as well as the recommendations of the International Monetary Fund (IMF).
These reforms aim to clean up the price structure of petroleum products by reassessing the logistics and operating costs of oil companies and by optimizing taxation and oil incidental taxation.
It is a question of reinforcing the transparency of the management of the petroleum downstream and of controlling the budgetary cost of the subsidy of petroleum products which weighs on the Treasury.
Nicolas Kazadi announced that the delivery of the final report of this audit will take place at the end of March 2023, after the administrations concerned as well as the oil industry have made their contributions.
The Monitoring Committee for the Audit of the Petroleum Product Price Structure (CSAPP), under the coordination of the two ministries, will be responsible for preparing and proposing a Plan for the development of new rules based on the recommendations of the Audit as well as as the roadmap for their implementation.
These elements will be subject to the appreciation of the Council of Ministers.
