The total amount of annual collectable revenue is theoretically calculated according to two parameters, which are: the rate of tax and the volume of matter liable for tax. In the Democratic Republic of the Congo, the rate of tax is published by the text regulating the tax (order-law or ministerial decree), whilst the volume of material liable for tax is declared in the form of statistics, that is how much of the product has been harvested or exported, declared by the person liable for tax. Thus the latter becomes the most determining tax element in the total amount of revenue collected. Certain sources either collaborate in part or openly refuse to collaborate out of suspicion that there might be an enquiry or out of a spirit of meanness. Taking into account all that has gone before, we have proceeded to calculate the total amount of revenue collected by the Congolese State as the following table indicates.
Table 6 Annual revenue per tax and per service mobilising revenue (USD)
Revenue generator |
1996 |
1997 |
1998 |
1999 |
2000 |
Service |
Surface area tax |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
OFMH |
Tax on felling permits1 |
40,415 |
40,415 |
40,415 |
40,415 |
40,415 |
FRFC |
Forestry products menus |
807 |
232 |
240 |
1,741 |
1,120 |
OFMH |
Tax on wood for export1 |
761,143 |
761,143 |
761,143 |
761,143 |
761,143 |
FRFC |
Exit duties |
214,8602 |
325,944 |
274,787 |
252,974 |
233,436 |
CEO |
TOT |
200,8313 |
200,8313 |
309,135 |
307,943 |
262,616 |
CEO |
Remunerative tax |
38,328 |
36,929 |
31,713 |
76,342 |
48,328 |
CMO |
MFMO tax |
1,2592 |
2,077 |
1,774 |
1,186 |
19,453 |
MFMO |
Provincial tax |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
DAB |
Tax on equipment |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
|
Central Bank tax |
6,4993 |
6,4993 |
9,159 |
2,558 |
7,781 |
|
Total |
1,311,630 |
1,421,168 |
1,520,311 |
1,512,575 |
1,384,879 |
Notes: 1 - Average of last 5 years according to 1998 annual report FRFC; 2 - Average of past 4 years; 3 - Average of past 3 years; n.a. = not applicable; revenue is shown in US dollars.
The above revenue is theoretical because:
- certain felling permits established by the Ministry were not collected by those who requested them (for example, Forestière and Amexbois);
- taxes on exit duties are calculated just for the years 1997 and 1999 for which we have the export information per species; and
- remunerative tax collected by the CMO is calculated on total exports at a rate of 1.5% whereas it should be levied product by product, because the CMO no longer publishes export information per species.
On the basis of the table above, it can be concluded that the monetary flow from the forestry sector is about USD 1.4 million (average for 5 years). Revenue to the supervisory ministry is valued at Fc 4,527,286,53 or USD 181,091 (Table 7). Revenue generated by the forestry sector is higher than that generated by the Ministry responsible for forestry. The amounts collected by other players (CEO, MFMO, the CMO and the Central Bank) are not included in the revenue of the ministry managing forestry.
Account |
Nature of revenue |
Forecast |
Amount collected (Fc) |
Variance | ||
Jan-Nov |
Dec |
Total | ||||
A. PROTECTION OF THE ENVIRONMENT | ||||||
16-91 |
Harvesting permit: Ets-Dangereux |
6,446,344 |
2,692,573 |
230,081 |
2,922,655 |
|
Subtotal |
6,446,344 |
2,692,573 |
230,081 |
2,922,655 |
45.34% | |
B. FORESTRY MANAGEMENT AND HUNTING | ||||||
19-14
19-21c
16-19 23-95 19-21d n.a. |
Permit for exporting products and sub-products, fauna & flora Permit for commercial capture Permit for legitimate holding (of animal) Surface area tax Permit for exporting roots Phyto-sanitary certificate Registering tax Sale of wood in the reserve |
- -
- - - - |
51,875 231,925
908 180 1,375 805,680 |
2,279 10,685
- - - - |
54,154 242,611
608 180 1,375 805,680 |
|
Subtotal |
46,843,317 |
1,249,283 |
24,964 |
1,274,248 |
2.74% | |
C. FISHING AND AQUATIC RESOURCES | ||||||
14-63 16-92 16-95 |
Tax on embarkation & fishing net Semi-industrial fishing permit Harvesting authorisation & permit to export aquarium fish |
46,584 47,220 |
31,942 67,838 |
- - |
31,942 67,838 |
|
Subtotal |
145,369 |
179,654 |
- |
179,654 |
123.58% | |
D. INSPECTORATE BODIES | ||||||
24-31a 24-31b 24-31c 24-31d |
Fines transactions, lég, Ets-Dangereux Fines transactions, hunting laws Fines transactions, fishing laws Fines transactions, forestry laws |
8,242 95,516 300,004 |
- - - |
- - - |
- - - |
|
Subtotal |
850,213 |
150,718 |
- |
150,718 |
17.72% | |
TOTAL |
54,015,249 |
4,272,230 |
255,046 |
4,527,286 |
8.38% |
Note: Ets-Dangereux is the name of the company. Source: main public accountant, Code 263, USD 1.00 = Fc 25.