As part of the European Union's Budget Support Programme in Guinea (2017-2019), the EU is supporting Guinea's government through a tax administration reform project (PARAF project). It aims to increase revenue mobilization.
Commissioned by the European Union, Expertise France has undertaken to carry out, with the support of FERDI (Foundation for Studies and research on International Development)- one of its partner- an initial assessment of tax expenditure.
It will allow to draw up an overview of all the tax advantages granted, to identify tax expenditure and to quantify the budgetary cost of some of them. The aim is to increase transparency in the management of public finances and, at a later stage, to assess the effectiveness of these tax expenditures in relation to the objectives initially set.
FERDI has been selected for this work thank to its proven experience in carrying out this type of exercise (Madagascar, Cameroon, etc.).
The following deliverables are expected from FERDI:
This mission, composed of Anne-Marie and Emilie Caldeira, is the first of the three missions planned for the realization of the project that will end at the end of May 2018.
In agreement with the project managers and the authorities, the aim of the first mission was to present the concept of tax expenditures in general, and the frame of the method envisaged for the study. In addition, it was necessary to ensure that the FERDI had all the tax texts available. Finally, the aim was to present and explain the nature of the information requested in the questionnaire sent by FERDI before the mission's arrival and to collect as much information as possible.
People met :
The mission was received by the Minister of the Budget, Mohamed Lamine DOUMBOUYA. It met Toumany SANGARE, Director General of Customs, Aboubacar Makissa CAMARA, National Tax Director and Esperanza ARRIZABALAGA VENA, Programme Officer at the European Union Delegation in the Republic of Guinea. It was supported by Jacques MAFFRE, in charge for Expertise France of the Administrative and Fiscal Reform Support Project (PARAF) and José SANGENIS, Head of Mission for Deloitte of the Public Finance Reform Support Programme (PARFIP) for the customs component.
The mission held several working meetings with the various departments involved in the tax expenditure evaluation exercise: at the DNI, the Service des Moyennes Entreprises (SME), the Service des Grandes Entreprises (SGE), the Division de la Règlementation et des Etudes Economiques (DIRECO); at the DGD, the Direction informatique et statistiques, the Direction de la législation et des recettes.
Two members who were approached to be part of the future structure that will be in charge of the evaluation of tax expenditures and their analysis participated in the work of the mission during the last two days of its stay.
At the end of the mission, a seminar was organized on the premises of the National Tax Directorate (DNI) to present and discuss the notion of tax expenditure, the advantages, and disadvantages of the approach as well as the conditions necessary for the sustainability of the exercise.