Togo: Unveils 2031 Tax Revenue Mobilization Strategy, Aims to Double Income

• Togo launched its 2027-2031 Medium-Term Revenue Mobilization Strategy (SRMT) to increase annual tax revenue to CFAF 2.109 trillion by 2031.
• The strategy aims to address a significant gap, as Togo's 2025 tax-to-GDP ratio of 13.1% is below the regional standard of 20%.
• Key measures include broadening the tax base, digitizing collection, and rationalizing tax expenditures.
• The plan was presented to the private sector on Tuesday, October 6, in Lomé, during a technical consultation.
• By June 2026, the Togolese Revenue Office (OTR) had collected CFAF 507.82 billion, a 14.3% year-on-year increase, representing 46.3% of the annual target.

The primary objective of this Togo 2031 tax revenue mobilization strategy is to elevate annual tax revenue to CFAF 2.109 trillion by the year 2031.

Togo has introduced a new comprehensive plan, the 2027-2031 Medium-Term Revenue Mobilization Strategy (SRMT), aimed at significantly boosting its national income. This strategic framework seeks to guide reforms across both tax and customs administrations, with the overarching goal of increasing domestic financial resources. The strategy was formally presented to private sector representatives on Tuesday, October 6, in Lomé, during the second technical consultation between government officials and business leaders.

The primary objective of this Togo 2031 tax revenue mobilization strategy is to elevate annual tax revenue to CFAF 2.109 trillion by the year 2031. This ambitious target is designed to be achieved without negatively impacting the competitiveness of the private sector, signaling a balanced approach to economic growth and fiscal responsibility. The government's engagement with the private sector at this early stage underscores its commitment to collaborative development of the new fiscal policies.

The impetus behind the new Togolese Medium-Term Revenue Mobilization Strategy stems from a recognized disparity in the nation's fiscal performance. Authorities acknowledge that there is considerable room for growth in tax revenue, as the country's tax-to-GDP ratio currently lags behind regional benchmarks. In 2025, this ratio was estimated at 13.1% of GDP, notably below the regional standard of 20%.

Kpowbié Tchasso Stéphane Akaya, the secretary-general of the Ministry of Finance and Budget, highlighted this discrepancy during the discussions, stating that a "significant gap" exists between the current tax burden, the regional standard, and Togo's inherent economic potential. This gap serves as a key motivator for the government's strategic reforms, which project a substantial increase in tax revenue from CFAF 1.0437 trillion in 2026 to the target of CFAF 2.109 trillion by 2031.

To achieve its ambitious revenue targets, the Togo 2031 tax revenue mobilization strategy outlines several core measures. These include a concerted effort towards Togo tax base broadening, which aims to bring more economic activities and entities into the tax net. Another critical component is the digitization of tax collection processes, leveraging technology to enhance efficiency and compliance. Furthermore, the strategy emphasizes the rationalization of tax expenditures, ensuring that tax incentives and exemptions are effectively managed and contribute to national development goals.

The strategy's reliance on digitalization is particularly significant, indicating a move towards more modern and streamlined tax administration. This focus on Togo tax digitalization plans is expected to strengthen collection mechanisms and improve overall efficiency for the Togolese Revenue Office (OTR) reforms. These measures collectively aim to not only increase the Togo tax-to-GDP ratio but also to create a more equitable and transparent tax system.

Even before the full implementation of the new strategy, Togo has demonstrated positive trends in tax collection. By the close of June 2026, the Togolese Revenue Office (OTR) had successfully collected CFAF 507.82 billion. This figure represents a robust 14.3% increase compared to the same period in the previous year, indicating a healthy upward trajectory in revenue generation.

This collection performance accounted for 46.3% of the annual target, which was set at CFAF 1.3389 trillion for 2026. The current momentum provides a foundational boost for the upcoming 2027-2031 Medium-Term Revenue Mobilization Strategy, suggesting that the country is already moving in the direction of increased fiscal capacity. The success of these initial efforts will be crucial in building confidence and momentum for the broader reforms envisioned under the Togo 2031 tax revenue mobilization strategy.

Lawyers and compliance officers should monitor the development and implementation of Togo's Medium-Term Revenue Mobilization Strategy, as it signals upcoming legislative changes and increased enforcement efforts in tax collection. This will necessitate advising clients operating in Togo on potential new tax obligations, expanded tax bases, and digital compliance requirements to avoid penalties.

Source: Original reporting via Africa Business Communities