The application of the (MST) on commercial goods and passenger vehicles is suspended from April 11. This decision taken by the Togolese government aims to help the population cope with soaring fuel prices and the high cost of living in the sub-region.
Since last Monday, the application of the tax on motor vehicles (TVM) has been suspended in Togo. This measure was jointly signed by the Minister of Economy and Finance, Sani Yaya, and the Minister of Road, Air and Rail Transport, Affoh Atcha-Dedji. Indeed, the measure mainly concerns categories of goods and passenger transport vehicles for commercial use.
This decision, according to the Ministers of the Economy and Transport, should allow “to improve the quality of life of the population”.The aim is to “mitigate the impact of inflation on freight and passenger transport activities”. A few weeks earlier, this measure had been mentioned following the rise in the price of fuel in the country and in the sub-region. Thus, it is in line with the actions undertaken by the executive in favour of the purchasing power of the population. According to the Togolese authorities, other measures are under consideration. As a reminder, the new motor vehicle tax rates had caused a lot of ink and spit among the population.
Togo struggles to withstand global crises
All African countries are struggling to revive their economies after the Covid 19 pandemic. But they are currently facing the high cost of living caused by the Russian-Ukrainian conflict. Nevertheless, countries such as Ivory Coast, Benin, Rwanda, Ethiopia, Ghana, etc. have taken important measures to enable their populations to manage the crisis as best they can.
In Togo, President Faure Gnassingbe has not failed to think about this. The Head of State announced some commendable measures during his New Year’s greetings to the nation. These include the advance of one month’s salary for civil servants; “vigorous price control actions“, and the payment of allowances equivalent to three months’ salary for those retiring.
With a population of over eight million, Togo is one of the West African countries that enjoys the good graces of the Atlantic Ocean. The Togolese government would like to increase the human development index from 0.484 to 0.554 between 2014 and 2022, and reduce monetary poverty from 55.1% to 44.6%. It also wants to reduce the unemployment rate to 2.6% and the underemployment rate to 19.4% by 2022.
