In a decisive move to protect households from rising prices, the Gabonese government has announced a six-month suspension of import duties, value-added tax (VAT), and scanning fees on essential goods.
The measure, aimed at curbing the cost of living, targets widely consumed food items and key construction materials, a decision designed to protect both purchasing power and housing affordability.
According to a statement from the Ministry of Economy, Finance, Debt, and State Holdings, the temporary fiscal relief applies to staple foods such as meat, poultry, fish, dairy products, canned goods, rice, pasta, cooking oils, and sugar. In the construction sector, the suspension covers reinforcing steel, cement, gravel, and sand, helping to limit the impact of rising material costs on housing prices and rents.
Authorities have emphasized that importers, wholesalers, and retailers are expected to pass on the savings to consumers. To ensure compliance, the government has set up inspections and introduced a toll-free hotline, enabling citizens to report instances where cost reductions are not reflected in retail prices.
The measure comes amid persistent inflationary pressures in Gabon. According to the Ministry of Economy, average annual inflation reached 1.8% by the end of September 2025, up from 1.4% a year earlier. Limited market supply, speculative practices, and the rising cost of key commodities have contributed to price increases across food and housing sectors. The government hopes that the tax suspension will stabilize prices and provide immediate relief to struggling households.
More Read
To further control prices, Gabon plans to operationalize a central purchasing agency in April 2026. The agency will negotiate directly with international producers to import essential staples such as rice and wheat, distributing them to wholesalers at fixed prices. Officials say this approach will complement the tax relief, offering a more sustainable solution to inflationary pressures over the medium term.
While the initiative is expected to ease living costs, it presents a significant challenge to public finances. Gabon’s economy has been under strain due to declining output in its key extractive sectors. Oil production fell by 4.3% and natural gas output by 1.7% in 2025, reducing government revenue. At the same time, rising wage bills and debt levels have put additional pressure on the budget, with net liabilities increasing by 11.1% in a single quarter.
Despite these fiscal constraints, government officials describe the tax suspension as a “substantial budgetary effort” aimed at protecting citizens. The policy reflects a recognition that immediate action is necessary to prevent households from being overwhelmed by soaring costs, particularly in food and housing.
Economic analysts have welcomed the measure but caution that its success will depend on proper implementation. “The key is ensuring that savings reach the final consumer,” said one expert. “Without effective monitoring, there is a risk that businesses could absorb the relief without lowering retail prices, undermining the policy’s objectives.”
For Gabonese families, the relief comes as a welcome reprieve. Rising inflation and the high cost of living have increasingly strained household budgets, and access to affordable food and housing materials is critical for daily life. By temporarily suspending taxes on these essential items, the government hopes to ease financial pressure, stabilize prices, and maintain social stability.
As Gabon navigates the dual challenges of inflation and constrained public finances, the tax suspension represents a significant policy intervention. It signals the government’s commitment to mitigating the impact of rising living costs while laying the groundwork for longer-term solutions, such as the central purchasing agency, to stabilize prices and protect the welfare of its citizens.
Gabon, a Central African country heavily reliant on oil and gas, has faced mounting economic challenges in recent years. The extractive sectors, which form a major portion of government revenue, have seen declining output, with oil production falling by 4.3% and natural gas output by 1.7% in 2025. This slowdown, combined with rising wage bills and growing debt levels, has placed significant strain on public finances.
Persistent inflation has added pressure on households. Annual consumer price inflation rose to 1.8% by September 2025, compared to 1.4% the previous year. Key drivers of rising prices include limited market supply, speculative practices in commodity trading, and global cost increases, particularly in food and construction materials. The rising cost of staples and building materials has heightened concerns over affordability and social stability, making interventions to protect purchasing power a priority for the government.
To address inflation, Gabon has previously implemented measures such as creating a central purchasing agency in 2025. Scheduled to begin operations in April 2026, the agency aims to stabilize prices by directly importing essential goods like rice, wheat, and other staples, and distributing them to wholesalers at fixed prices.
The six-month suspension of import duties, VAT, and scanning fees on essential goods represents a continuation of these efforts. The government hopes the temporary tax relief will immediately ease household financial burdens while complementing longer-term strategies to stabilize the economy.
