Surprise Revelation in the Tax Community
A routine information meeting at the Brazzaville Chamber of Commerce became historic when the Minister of Finance announced that the 2026 finance bill will abolish the personal income tax and revive four specialized levies. The audience of bankers, construction firms, and startups fell abruptly silent, then launched into questions.
The Minister described this overhaul as a cornerstone of the medium-term budget framework approved by the Cabinet in May, stressing that “simplicity and fairness are at the heart of the new design.” Observers noted that the reform echoes the pre-1996 tax architecture.
Under the proposal, wages will be taxed under a Salary Tax, rental income under a Property Income Tax, dividends and interest under a Movable Capital Tax, and self-employed profits under a Profits Tax.
Family status, marriage, and the concept of the household as a tax unit will disappear from tax forms. Officials claim this change reduces loopholes, eases compliance, and aligns Congo-Brazzaville with CEMAC zone peers where individual allowances are being phased out.
Changes Felt by Workers and Investors
Payroll services will have to recode their software before January 1, 2026, the effective date of the new salary tax. According to preliminary brackets presented by the ministry, the top marginal rates drop from 40% to 33%, while the lower brackets fall below 5%.
Property owners, a growing category in Brazzaville and Pointe-Noire, face a flat 15% rate on rental income, but depreciation schedules for new buildings will be extended to offset the impact. Asset managers welcomed the separate tax on capital income, predicting clearer rules for portfolio allocation.
Entrepreneurs operating in the informal sector are expected to transition to the profits tax, replacing the occasional lump-sum levies collected at roadblocks. “We prefer a transparent rate to random one-off fees,” said a fabric importer who trades between Oyo and Ouesso.
Fiscal Discipline and Debt Priorities
The goal is a 17% increase in non-oil revenue next year, coupled with a cap on spending growth at 3%. The ministry forecasts a primary surplus that would stabilize public debt at around 57% of GDP, below the CEMAC convergence ceiling.
Treasury officials state that stronger national revenue mobilization could reduce reliance on regional bond issuances, whose yields have risen since January. “A broader base means less pressure to refinance short-term securities,” said a sovereign debt officer at a local brokerage.
The International Monetary Fund, in its 2024 Article IV report, encouraged Brazzaville to continue eliminating exemptions and modernizing collection, describing the draft tax reform as “a step toward inclusive growth” while urging safeguards for vulnerable households.
Private Sector Calls for Modern Tools
Business federations used last week’s session to push for electronic filing and portals for