Togo has adopted its 2026 finance law, introducing certified electronic invoicing and a range of new taxes and exemptions aimed at strengthening revenue mobilisation and reshaping economic incentives, authorities said.
The budget law was approved on December 29, 2025, as the government seeks to boost domestic resources while aligning fiscal policy with economic, social and governance objectives.
One of the flagship measures in the new finance law is the introduction of certified electronic invoicing, designed to improve transaction traceability and curb tax fraud, particularly related to value-added tax (VAT).
Authorities say the system will increase transparency in commercial transactions, facilitate tax audits and strengthen compliance in the formal sector. The move is part of a broader digitalisation drive within the tax administration.
In a related effort to widen the tax base, the government has also introduced a final withholding tax of five percent on winnings from betting and games of chance when the amount per bet exceeds 500,000 CFA francs. The measure has already entered into force, officials said.
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The government argues that the tax targets a rapidly growing sector while limiting opportunities for under-reporting of income linked to gambling activities.
Alongside measures to boost revenue, the 2026 finance law introduces targeted fiscal incentives aimed at supporting productive sectors of the economy.
Parliament approved a VAT exemption on feed and nutritional supplements used in local livestock and fisheries production. Lawmakers said the measure is intended to reduce input costs for producers and support the development of animal production, a key source of income and food security in rural areas.
At the same time, the government introduced export taxes on raw cashew nuts, soybeans and shea nuts. Authorities say the aim is to discourage the export of unprocessed agricultural products and promote local processing and value addition.
Togo is one of West Africa’s leading producers of cashew nuts, but most of its output is exported raw, limiting job creation and industrial development. Officials say the new export taxes are intended to support the emergence of domestic agro-processing industries.
The finance law also includes several social inclusion measures. Companies that hire persons with disabilities will benefit from a non-refundable tax credit of 120,000 CFA francs per employee per year, according to the law.
In addition, the registration process for public procurement contracts reserved for young entrepreneurs and women has been simplified. The law allows for deferred payment of registration fees, a move designed to ease cash-flow constraints for small and emerging businesses.
On asset taxation, the government introduced a proportional duty of 3.5 percent on increases in value resulting from property revaluation requests. Authorities said the measure reflects an adjustment of the tax framework to evolving asset values and aims to ensure fairer taxation of real estate gains.
For 2026, the government has balanced the budget in revenue and expenditure at 2,740.5 billion CFA francs (US$4.5 billion), representing a 14.4 percent increase compared with the 2025 budget.
Revenue mobilisation is expected to be driven primarily by the Togolese Revenue Authority (OTR), which plays a central role in tax and customs collection.
The government has pointed to what it describes as encouraging performance by OTR in recent years. In 2025, the agency was tasked with mobilising around 1,200 billion CFA francs, an increase of eight percent year on year.
By the end of September 2025, OTR had collected nearly 830.5 billion CFA francs, according to official figures, putting it broadly on track to meet its annual target.
The authorities say the combination of digital tools, targeted taxes and selective exemptions is intended to strengthen fiscal sustainability while supporting economic transformation and social inclusion.
However, analysts note that the success of the reforms will depend on effective implementation, enforcement capacity and the ability to balance revenue mobilisation with the need to support growth in a still-fragile economic environment.
As Togo enters 2026, the government is betting that tighter compliance and a more strategic use of taxation will help finance development priorities while maintaining macroeconomic stability.
