Gabon is planning to introduce a new housing tax in January to finance the Central African oil-producing country’s needs as its debt continues to rise.
The country is facing an acute squeeze on liquidity that has left it increasingly reliant on regional capital markets.
Authorities are working on a tax that will be paid monthly by an owner of a dwelling or a tenant, special adviser Marie-Noelle Ada Meyo said on the Gabon Presidency’s social media.
Gabon’s treasury will use the funds to improve public lighting, road maintenance and city cleanliness, Ada Meyo said.
The contribution will vary depending on the area between 1 000 ($1.80) and 30 000 CFA Francs ($53.88) per month. However, the most vulnerable households, schools and places of worship will be exempted, she added.
More than a third of Gabon’s population lives in poverty, according to the World Bank. Access to basic services such as water and electricity remains difficult in rural areas.
Gabon’s outstanding public debt increased to 8.6 trillion CFA Francs ($15.45 billion) at the end of October from 7.1 trillion for the same period last year, a document released by the country’s debt authority on Tuesday showed.
The overall amount comprises 4.2 trillion CFA Francs ($7.14 billion) of external debt and 4.4 trillion ($7.48 billion) of domestic debt, including 3.2 trillion ($5.44 billion) issued on the regional financial market.
Arrears stood at 443.6 billion CFA Francs ($753 million) at the end of October.
–Reuters–
