Support for the evaluation of tax expenditures in the Republic of Guinea

Support for the evaluation of tax expenditures in the Republic of Guinea
Mandated by the EU, Expertise France undertook to carry out, with the support of FERDI (Foundation for Studies and Research on International Development) as a partner, the evaluation of tax expenditures in the Republic of Guinea.

Complete • February 01, 2018 > November 30, 2019

As part of the European Union (EU) budget support program in Guinea (2017-2019), the EU has supported the Republic of Guinea in its objective of increasing revenue mobilization through a tax administration reform project (PARAF project).

Mandated by the EU, Expertise France undertook to carry out, with the support of FERDI (Foundation for Studies and Research on International Development) as a partner, the evaluation of tax expenditures in the Republic of Guinea. FERDI was chosen because of its proven experience in carrying out this type of exercise (Madagascar, Cameroon, etc). 

In 2018, FERDI supported the Guinea Budget Ministry in carrying out the first exercise to assess the budgetary cost of tax expenditures for 2016. In the course of three visits, the aim was to identify the legal texts available, to define a Reference Tax System (RTS), to make an inventory of derogatory measures, and then to collect the available data to evaluate the budgetary cost of the identified tax expenditures. The visits also aimed to transfer train local teams, and to encourage the creation of an institutional framework essential for the sustainability of the reform project. 

After an audit carried out on the results for the 2017 fiscal year, FERDI's support was re-engaged in 2019. The aim was to support the implementation of the third tax expenditure evaluation exercise for 2018. It resulted in the drafting of a report which assessed the budgetary cost of tax expenditure, including a study of the social impact of VAT exemptions on final consumption goods. Also, following a specific request from the Minister of the Budget, FERDI supported the Minister’s cabinet members in the dissemination of the study's results. 

For the Republic of Guinea FERDI's work encompassed 7 visits, 2 tax expenditure evaluation reports (2016 and 2018), a methodological guide to the evaluation of tax expenditures (2016), 2 weeks of training and 1 week for dissemination. 

Partners

  • Expertise France

Outputs