The Democratic Republic of Congo saw a sharp rise in oil-related state revenue in 2025 after the government scrapped tax exemptions on fuel imports used by mining companies, the finance ministry said, highlighting the impact of reforms aimed at boosting domestic revenue mobilisation.
In a statement dated Jan. 20, the ministry said revenue linked to refined petroleum products surged by nearly 1,700% after exemptions for mining firms and their subcontractors were removed in late July 2025.
Monthly oil-related revenue rose from an average of about 4.43 billion Congolese francs, or roughly US$2 million, between January and July 2025 to around 78.5 billion francs per month between August and December, the ministry said. Over the full year, total collections reached 423.6 billion francs, equivalent to about US$194 million.
The reform forms part of broader efforts by the Congolese authorities to curb tax expenditures and strengthen public finances in a resource-rich economy that has long struggled to convert natural wealth into sustainable budget revenue.
“Thanks to this reform, implemented in a coordinated manner across government, the General Directorate of Customs and Excise significantly increased revenue collections,” the ministry said.
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Total customs revenue reached about 6.85 trillion Congolese francs, or roughly US$3.13 billion, by the end of December 2025, exceeding the 2025 Treasury Plan target of 6.28 trillion francs, or about US$2.87 billion. The outturn represented 109 percent of the annual objective, the ministry added.
Fuel-related tax expenditures had previously weighed heavily on public finances. According to the ministry, exemptions and subsidies linked to petroleum products amounted to about US$1.6 billion in 2022 and US$1.1 billion in 2023, equivalent on average to around 15 percent of total state revenue over the two years.
Officials said the scale of these tax expenditures, which significantly reduced budgetary resources, prompted the government to reform the tax regime governing imports of refined petroleum products, particularly those destined for the mining sector.
Mining is the backbone of the Congolese economy, accounting for the bulk of export earnings, driven largely by copper and cobalt production. Mining companies are among the country’s largest fuel consumers, especially in the southern and eastern regions where most large-scale operations are located.
Under Article 22 of the 2025 Finance Act, the government removed subsidies and import tax exemptions, including customs duties and value-added tax, on land and aviation fuels used for mining activities or sold to mining companies and their subcontractors.
The measure was formalised through an interministerial decree signed on May 2, 2025 by the ministers of national economy, finance and hydrocarbons, the ministry said.
The reform took effect in late July 2025 following the publication of a specific fuel pricing structure for the mining sector. The new framework applies mainly to mining regions in the south and east of the country, where fuel demand is highest.
Alongside the removal of exemptions, the finance ministry suspended certain import facilities, while the hydrocarbons ministry tightened controls over fuel distribution and strengthened tracking mechanisms to limit fraud and tax evasion, the statement said.
The authorities say the measures are intended not only to raise revenue but also to improve transparency and fairness in the tax system, ensuring that large industrial users contribute more consistently to public finances.
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The reform comes as the Congolese government seeks to stabilise its budget amid growing spending pressures, including infrastructure investment and social needs, while engaging with international partners on economic and governance reforms.
Economists say the sharp increase in oil-related revenue underscores the importance of reducing tax exemptions in sectors dominated by large corporate actors. However, they caution that sustaining gains will depend on effective enforcement, monitoring and dialogue with the mining industry to limit the risk of cost pass-throughs or reduced investment.
The finance ministry said it would continue to assess the impact of the reform on revenue performance and the broader economy, as authorities pursue further measures to strengthen domestic resource mobilisation in Africa’s largest country by land area.
