At the end of the Council of Ministers on Friday 11 November devoted to the adoption of the draft finance bill for the year 2023, the Togolese government announced new social measures to mitigate the effects of the high cost of living. These measures come into force in 2023.
This finance law comes in a security context that remains worrying and takes into account the government’s priorities in terms of sustainable development and the effects of the current crises facing Togo. It devotes 623.4 billion CFA francs to the social sectors, compared to 522.2 billion in the 2022 budget, an increase of 19.6%.
As a result, new measures have been proposed to continue social inclusion actions and to improve the business climate. Among other measures, the Togolese government will extend the VAT exemption on school canteens to those of universities and companies. The rate of the patent will also be lowered in order to support the loincloth resellers and make the prices of loincloth fabrics competitive.
In addition, insurance premiums paid by employers for employee health insurance will now be tax deductible. Moreover, the equipment and machinery will benefit from exemptions from customs duties and taxes, in order to support the building and public works sector.
It should be noted that the social measures taken by the government in 2022 to improve the conditions of the population in the face of the high cost of living will continue. This involves a 10% increase in the index value of salaries and retirement pensions for civil servants and military personnel, and an additional 5% increase in retirement pensions for all pensioners in the civil and military public sector and the private sector. The program also included transport allowances and increased subsidies on gas and fertiliser.
