September 24, 2017

DRC orders mining, oil firms to pay tax in US dollars

How is the Democratic Republic of Congo government dealing with the depletion of foreigh reserves resulting from the commodities price slump? According to a report from the country’s capital filed by journalist, Mwarabu Amedee Kiboko, the government,  through the Central Bank of Congo, has ordered mining and oil firms to pay taxes and import duties in US dollars rather than in the national currency.

The decision is an turn-about of a policy which was passed in 2014 which required companies to pay taxes in francs as part of a drive to wean the central African country off dollars.

The report quotes the Central Bank’s Governor, Deogratias Mutombo, as saying: “The measure would enable the Bank to get a grip on some of the currency supply and allocate it rationally to the public and private sector.”

Information from the Extractive Industries Transparency Initiative, which sets a global standard for accountable management of natural resources, indicates that mining and oil companies contribute about 2bn dollars annual revenue to the government coffers.

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