Cabo Verde Government proposes higher tax collection to finance development

13 September 2017

Cabo Verde (Cape Verde) has to look for solutions to finance its development with its own resources, both through tax collection and the use of the domestic financial market, said Finance Minister Olavo Correia, quoted by the Cape Verdean press.

Saying that development will also be helped by improving the business climate, Olavo Correia said that it would not be possible to reduce public debt in the short term and that “saying otherwise would be being less than truthful to Cape Verdean citizens.”

“There are a number of responsibilities both in the State Budget and in the public companies that will cause public debt to increase,” said the finance minister who stressed that the problem should be solved in the medium term.

Correia said that there is a strategy to reduce that debt, involving extension of the tax base, “so that all those who do not pay taxes begin to pay them.”

The minister added that tax evasion has to be combated, the fiscal system has to be improved along with the level of collection so that some of these resources can be used for security, transport and other sectors. (macauhub)