IMF Staff Country Reports

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Format: Chicago

International Monetary Fund. African Dept. "Niger: Selected Issues", IMF Staff Country Reports 2025, 026 (2025), accessed April 22, 2025, https://doi.org/10.5089/9798229000345.002

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Summary

This Selected Issues paper estimates the tax revenue gap, which reflects the difference between the actual tax revenue collected and the potential revenue for Niger's economic and institutional context. The tax revenue gap has been increasing since 2015 and reached 3.4 percent of gross domestic product in 2022, primarily due to gaps in the collection of taxes on goods and services, and international trade taxes. In order to enhance revenue mobilization in Niger, it is essential to rationalize value-added tax (VAT) exemptions and the reduced VAT rates on specific products, reform excise and property taxes, and strengthen tax administration. Furthermore, addressing informality and enhancing the ability to collect taxes from the informal sector, along with improving governance, will bolster revenue mobilization capacity in the medium to long term. Improving social acceptability will require a well-thought communication strategy and mitigating measures. Improving transparency and accountability of institutions are essential to gain support for revenue mobilization.

Subject: Output gap, Potential output, Production, Revenue administration

Keywords: B. revenue potential, Global, Governance weakness, North Africa, Output gap, Output gap estimate, Output gap estimation, Potential output, Sub-Saharan Africa, Tax revenue potential, West Africa

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