APA-Ouagadougou (Burkina Faso) Cash-strapped Burkina Faso is looking to strengthen its war chest t fund an ongoing military campaign against deadly insurgents infesting the south of the country.
The military junta on Wednesday issued new decrees aimed at broadening the tax base to finance the Patriotic Support Fund (FSP).
Under the Ministry of Finance, the Council of Ministers adopted a draft law establishing a special contribution on the consumption of certain products and services, to feed the Patriotic Support Fund.
The adoption of this bill “strengthens the legal framework of this special tax, which already exists on certain products such as drinks, cigarettes and cosmetics,” the Minister of Finance, Aboubakar Nacanabo explained.
The mining sector, which contributes 18 percent of the gross domestic product (GDP), is also under the new tax regime.
The government has indicated that it has amended the Mining Code, in articles 26 and 30, so that the Mining Fund for Local Development (FMDL) can support the Patriotic Support Fund (FSP).
“These resources will help restore and strengthen security throughout Burkina Faso and provide an urgent, effective and efficient response to the humanitarian crisis in Burkina Faso,” the Council of Ministers’ minutes state.
In the second half of 2022, more than CFA 25 billion were collected from the FMDL, more than half of which was transferred to the FSP.
As of March 31, 2023, more than CFA 7 billion has been mobilized for the FSP. Several taxes on beverages and cigarettes have been introduced to feed it.
The authorities need CFA 100 billion to purchase equipment and provide support for the Volunteers for the Defense of the Motherland (VDPs).
The other component of the war effort concerns the voluntary contributions operation, which has raised nearly CFA480 million as of the end of March 2023.
Faced with an unprecedented security crisis, the transitional government is looking for every way to finance the fight against terrorism.
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