Togo’s revenue authority collected about US$1.38 billion in public revenues between January and September 2025, up 5.6 percent from a year earlier, official data showed on Tuesday, reflecting stronger tax and customs collections.
According to the third-quarter budget execution report from the Directorate General of Finance and Budget, the outturn represents US68.7 percent of the government’s full-year target of roughly US$2.01 billion.
Revenue collection compared with the same period in 2024, when receipts stood at around US$1.31 billion, was largely driven by higher tax inflows, particularly corporate income tax. Collections from companies rose 9.75 percent year on year to about US$212 million, the report showed.
Customs duties also contributed to the increase, climbing 6.46 percent to approximately US$236 million over the nine-month period, as authorities intensified efforts to curb fraud and smuggling.
The gains come as the Office togolais des recettes (OTR) pushes ahead with reforms aimed at widening the tax base and improving compliance in an economy where informal activity remains widespread.
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A newly introduced levy on telecommunications and information and communication technology companies provided an additional boost. The tax, known as TETTIC, generated more than US$8.3 million between January and September, creating a new stream of fiscal revenue.
Officials attributed the improved performance to a combination of policy and operational measures, including broader taxation of individuals, the extension of tax obligations to digital platforms, and reforms to governance adopted in 2025 to strengthen oversight and efficiency within the revenue authority.
The stronger revenue intake comes as the government seeks to shore up public finances amid rising spending needs, including infrastructure investment and social programmes. Like many West African countries, Togo is under pressure to mobilise more domestic resources to reduce reliance on external financing and preserve fiscal sustainability.
Despite the improvement, authorities said meeting the full-year revenue target will require sustained momentum in the final quarter, which is traditionally critical for tax collection.
Looking ahead, the OTR plans to roll out a new strategic plan covering 2026–2030, aimed at further modernising tax administration, expanding digitalisation, and gradually integrating more informal economic activity into the tax system to lift revenues over the medium term.
The government has said stronger domestic revenue mobilisation remains central to funding development priorities and supporting economic growth in the small coastal nation of around eight million people.
Togo’s tax and revenue system has undergone steady reforms over the past decade as the government seeks to strengthen domestic resource mobilisation, reduce fiscal deficits and fund development spending without excessive reliance on debt.
At the centre of revenue collection is the Office togolais des recettes (OTR), a semi-autonomous body created in 2014 through the merger of the tax and customs administrations. The reform aimed to improve efficiency, limit leakages and strengthen compliance by placing revenue collection under a single institutional framework.
Tax structure
Togo’s revenues are dominated by tax receipts, with corporate income tax, value-added tax (VAT), personal income tax and customs duties forming the core pillars.
Corporate income tax has become an increasingly important contributor, particularly as authorities intensify audits of large firms and improve enforcement among medium-sized enterprises. VAT remains the single largest tax source, reflecting the country’s reliance on consumption taxes in an economy where much activity remains informal.
Customs duties also play a major role, as Togo’s economy is closely linked to regional trade. The port of Lomé one of West Africa’s key transshipment hubs provides a steady stream of customs revenues, though these are vulnerable to regional trade slowdowns and smuggling.
Broadening the tax base
A major challenge for Togo has been its narrow tax base. Authorities estimate that a large share of economic activity takes place outside the formal system, limiting revenue potential.
In response, the OTR has stepped up efforts to register new taxpayers, particularly among small businesses and self-employed individuals. Digital tools, including electronic tax filing and payment systems, have been expanded to simplify compliance and reduce administrative costs.
The government has also moved to tax emerging sectors. Recent measures include levies on telecommunications and digital services, reflecting the growing role of mobile and online platforms in the economy.
Regional constraints
Togo’s fiscal policy is shaped by its membership of the West African Economic and Monetary Union (WAEMU), which imposes convergence criteria on deficits, debt and inflation. These rules limit fiscal space but also encourage discipline and predictable revenue mobilisation.
Within WAEMU, Togo has performed relatively well in improving tax collection, though its tax-to-GDP ratio remains below regional averages, highlighting room for further gains.
Governance and enforcement
Anti-fraud measures have become a priority, particularly in customs, where under-invoicing and smuggling have historically eroded revenues. The OTR has increased inspections, introduced risk-based controls and strengthened cooperation with neighbouring countries to combat illicit trade.
Governance reforms adopted in 2025 reinforced the authority’s operational independence and accountability, a move officials say is crucial for sustaining revenue gains over time.
Medium-term outlook
Looking ahead, the OTR plans to implement a strategic plan for 2026–2030 focused on deeper digitalisation, improved taxpayer services and stronger enforcement. The aim is to gradually lift revenues while supporting economic growth and maintaining social stability.
For the government, stronger tax mobilisation is central to financing infrastructure, education and health spending, while keeping debt on a sustainable path in an increasingly uncertain global environment.
