Senegal’s Minister for the Budget, Birima Mangara, has said there will be no tax increases in the 2016 Budget. The recently released draft budget includes an ambitious target for tax collections of XOF1.72 trillion (USD2.98m), which will be found by improvements to tax administration and heightened enforcement efforts.
Mangara said that, in collaboration with the International Monetary Fund, the Government is seeking to ensure that it can keep taxes low, to promote consumption and inward investment, partly by lowering the government wage bill.
Senegal, officially known as the Republic of Senegal is a country in West Africa which its economical and political capital is Dakar. It is the westernmost country in the mainland of Africa and owes its name to the Sénégal River, which borders it to the east and north. The name “Senegal” comes from the Wolof “Sunuu Gaal,” which means “Our Boat.” Senegal covers a land area of almost 197,000 sq km (76,000 sq mi) and has an estimated population of about 13 million.
The main industries include food processing, mining, cement, artificial fertilizer, chemicals, textiles, refining imported petroleum, and tourism. Exports include fish, chemicals, cotton, fabrics, groundnuts, and calcium phosphate. The principal foreign market is India at 26.7% of exports (as of 1998). Other foreign markets include the United States, Italy and the United Kingdom. Senegal also has a 12-nautical-mile (22 km; 14 mi) exclusive fishing zone that has been regularly breached in recent years (as of 2014). It has been estimated that the country’s fishermen lose 300,000 tons of fish each year to illegal fishing.
As a member of the West African Economic and Monetary Union (WAEMU), Senegal is working toward greater regional integration with a unified external tariff. Senegal is also a member of the Organization for the Harmonization of Business Law in Africa (OHADA). The country realized full internet connectivity in 1996, creating a mini-boom in information technology-based services. Private activity now accounts for 82% of its GDP and is a major recipient of international development assistance. Donors include the United States Agency for International Development (USAID), Japan, France and China.