Table 3. Illustrations of low- and high-scenario settings for each revenue-raising mechanism in Benin, Mali, Mozambique and Togo .
| Country and tax to be considered | Low scenario | High scenarioa | Options proposed for consideration |
|---|---|---|---|
| Benin | |||
| Alcoholic drinks | NA | Increase in tax rate by 15%; currently 15% on beers and ciders; 35% on wine; 40% on spirits & champagnea | High scenario |
| Airplane tickets | NA | New levy of US$ 20 on airplane tickets | High scenario |
| Telephone (mobile) | NA | New tax of 2% on airtime or mobile phone credits | High scenario |
| Financial transactions | NA | New tax of 5% on official remittances | NA |
| National lottery | NA | New tax of FCFA 200 per ticket, based on the average price of a lottery ticket | High scenario |
| Mali | |||
| Alcoholic drinks | Increase in tax rate by 5% on imported alcoholic drinks | Increase in tax rate by 15% on imported alcoholic drinks | High scenario |
| Airplane tickets | Increased taxes on tickets for passengers going abroad: economic class FCFA 15, business class FCFA 150; arriving: FCFA 15; in transit: FCFA 15 | Increased taxes on tickets for passengers going abroad: economic class FCFA 25, business class FCFA 250; arriving: FCFA 150; in transit: FCFA 25 | High scenario |
| Telephone (mobile and fixed) | New tax of 1% tax on operators’ revenues | New tax of 3% on operators’ revenues | New tax of 2% on operators’ revenues |
| Financial transactions | New tax of 0.01% on diaspora remittances | New tax of 1% on diaspora remittances | NA |
| Extractive industries | No scenarios definedb | No scenarios definedb | NA |
| Mozambique | |||
| Alcoholic drinks | New tax of 1% on retail price of beer, 2% on wine and 5% on spirits | New tax of 1% on retail price of beer, 2% on wine and 10% on spirits | Low scenario |
| Tourism services | New tax of 1% on cost of accommodation | Same as low scenarioc | Low scenario |
| Vehicles, cars | Increase in statutory tax rates by 10% once every 3 years | Increase in statutory tax rates by 20% once every 3 years | Low scenario |
| Extractive industries | 10% minimum statutory rate of hypothecation; annual growth rate of tax revenues equal to a minimum of 5% (earmarking) | 10% minimum statutory rate of hypothecation; annual growth rate of tax revenues equal to a minimum of 15% (earmarking) | Low scenario |
| Togo | |||
| Alcoholic drinks | Increase in tax rate by 15% on all imported alcoholic drinks | Increase in tax rate by 10% on beer from the local brewery, and a 15% increase in the tax on all imported alcoholic drinks | High scenario |
| Airplane tickets | Increased taxes on tickets for passengers going abroad: economy class FCFA 10, business class FCFA 100; arriving: FCFA 10; in transit: FCFA 10 | Increased taxes on tickets for passengers going abroad: economy class FCFA 20, business class FCFA 200; arriving: FCFA 30; in transit: FCFA 20 | High scenario |
| Telephone (mobile and fixed) | New tax on calls of 1 FCFA per minute | New tax on calls of 5 FCFA per minute | Low scenario |
| Financial transactions | New tax of 0.01% on diaspora remittances | New tax of 1% on diaspora remittances | NA |
| Extractive industries | No scenarios definedb | No scenarios definedb | NA |
FCFA: West African CFA franc; NA: not assessed and/or not proposed for consideration; US$: United States dollars.
a No data on alcoholic drinks taxes, prices and consumption were available in Benin. Instead, average revenues of other countries were used as an approximation. West African Economic and Monetary Union tax ceiling of alcoholic drinks beverages of 50% needed to be considered.
b No scenario defined due to lack of data
c Due to lack of accurate data and simplicity, it was assumed that circumstances would remain the same as under the low scenario.
Notes: A new tax refers to introducing a new type of tax, independent of whether another type of tax (for example a value added tax) existed on the same product or service. An increased tax rate refers to an existing tax that is raised.