High-Level Summary Technical Assistance Reports

High-Level Summary Technical Assistance Report: Mauritania: Tax Policy Diagnostic

Author/Editor:

Grégoire Rota-Graziosi ; Thomas Benninger ; Jean-François Brun ; Emilie Caldeira ; Fayçal Sawadogo

Publication Date:

July 25, 2024

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The IMF’s Fiscal Affairs Department has been working with Mauritania on capacity building in tax policy. Mauritania has recently created a tax policy unit and adopted a new General Tax Code in 2019 with a corporate income tax and a semi-dual approach to personal income taxation. However, there is significant scope to enhance the efficiency and effectiveness of income taxes, including due to the proliferation of wasteful tax exemptions. The fast urbanization also calls for a review of recurrent property taxation. The formalization of property rights requires a temporary suspension of the excessive registration fees. Consumption taxation can also be improved by broadening the tax base, for example, by abolishing regressive value-added tax exemptions or by imposing excise taxes on imported used vehicles. Finally, several recommendations aim to support the reform of the Mining Code, such as introducing some progressivity, prohibiting the negotiation of any tax parameters, and strengthening the principle of ring-fencing.

Series:

High Level Summary Technical Assistance Report No. 2024/026

Subject:

Consumption taxes Corporate income tax Income and capital gains taxes Revenue administration Taxes Value-added tax

Frequency:

Regular