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Home World Cape Verde loses 30% of tax revenue in 2020 - Africa

Cape Verde loses 30% of tax revenue in 2020 – Africa

Cape Verde lost 30% of tax revenue in 2020, dropping 88 million, equivalent to more than 5% of the Gross Domestic Product (GDP), due to the covid-19 pandemic, according to Lusa calculations based on official data.

According to data from the report of the Provisional Account of the State of the fourth quarter of 2020 compiled this Thursday by Lusa, in direct and indirect taxes, the Cape Verdean Treasury collected 32,236.8 million escudos (290 million euros) from January to December. euros), against 42,013.4 million escudos (378 million euros) in the same period of 2019.

This is a drop of 9,776.6 million escudos (88 million euros) in the space of one year, a performance justified by the economic crisis resulting from the covid-19 pandemic, which since March has completely paralyzed the tourism sector, which guarantees 25% of Cape Verde’s GDP, which in 2019 reached a record 819 thousand tourists.

Due to the pandemic, Cape Verde’s GDP forecast for 2020, in the Amending State Budget that came into force in August, was revised downwards to 183,748 million escudos (1,674 million euros), so this fall in revenue from taxes collected, compared to 2019, weigh more than 5% of the estimated Cape Verdean GDP.

According to data on budget execution for 2020, income from income tax on workers fell 10.6%, to 6,438.1 million escudos (58 million euros), while that of companies fell 39%, to 3,341 million escudos. escudos (30 million euros).

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“The variation in the collection of this tax [Imposto sobre o Rendimento das Pessoas Singulares] was not as accentuated as most of the others, given that, despite the crisis, the impact on the payment of personal income was not very significant, overall, with measures adopted as the ‘lay-off’ “, read if in the report.

The Value Added Tax (VAT), the most profitable, fell 26.4%, to 15,195.6 million escudos (136.8 million euros), while the Tourist Contribution, paid by tourists for each night of stay in hotel units in Cape Verde, fell 70.1%, to 296.6 million escudos (2.7 million euros), and the International Transaction Tax, applied to imports, fell by almost 18%, to 6,593 million escudos ( 59.3 million euros).

Cape Verde has accumulated 15,558 cases of covid-19 since March 19, 2020, which caused 150 deaths, but 14,291 cases were reported to be recovered and 474 were active on March 3.



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