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Union of the Comoros: Selected Issues and Statistical Appendix

Author(s):
International Monetary Fund
Published Date:
October 2006
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Chapter II: Fiscal Decentralization: Accomplishments and Challenges1

1. Since the mid-1980s, many sub-Saharan African countries have started a process of decentralization through the transfer of power, resources, and responsibilities to subnational governments. 2 The pace and the extent of the decentralization process have been uneven. Differences in designing the institutional framework were often a response to different political contexts. In countries with strong ethnic or political rivalries, a federal system has been considered an effective way of keeping the country together. In other countries, including Mali, Madagascar, and Senegal, the introduction of a regional government between the central and the local authorities was seen as instrumental to provide more autonomy to some areas of the country, as well as to favor a more equitable distribution of national resources.

2. In Comoros, decentralization plays a very important political role, with significant implications for fiscal policy. Since 2001, the country has undergone an intensive process of political and fiscal decentralization as part of its national reconciliation process. 3 The result has been a complex system of fiscal federalism with important implications for the effectiveness of fiscal policy. The main objective of this chapter is to review how the new system has worked in practice, highlighting the challenges for policy implementation and offering suggestions for strengthening the effectiveness of fiscal policy in a highly decentralized context.

A. Political Background

3. The four islands of Comoros have a long history of self-determination. Even in colonial times, each clung to local custom and maintained a significant degree of self-rule. After a referendum on independence, three of the islands—Anjouan, Ngazidja (also known as Grande Comore), and Moheli—formed the newly independent nation of Comoros in 1975. The fourth island, Mayotte, chose to remain under French administration, as it still does.

4. Political power has gravitated to Ngazidja, the largest, most populous island where the capital, Moroni, is situated. Under several national autocratic leaders, including foreign mercenaries, decision-making was centralized in the island that served as the seat of power. Due to the geographic dispersion of the three islands, the national government had significant control over administration in Ngazidja and was less involved in the other two islands. Conversely, the other two islands were less involved in national decision-making, despite the integration of officials from all islands in the national government.

5. Anjouan, the second largest island, holds considerable economic power, which it uses to pursue local objectives. Comoros’s only deep-water port is in Anjouan, which gives the island control over much of the country’s international trade and therefore custom collections. The port has also given a boost to local commerce and manufacturing, which are relatively more developed in Anjouan than on the two other islands. Despite its economic strength and contributions to the national budget, the island’s role in national politics has recently become somewhat limited, not least because of its geographic distance to the capital.

6. Moheli is far smaller than the other two islands and relies primarily on a subsistence economy. Its political influence comes from being one of three national voices and sometimes siding with Anjouan to attain concessions from the national government.

7. A major separatist crisis erupted in 1997. Anjouan ceased to cooperate with the national authorities, and Moheli followed suit. The two islands declared independence, which was neither accepted by Ngazidja nor recognized by the international community. Notwithstanding an early skirmish in Anjouan, civil war was averted. After several leadership changes, military rule was instituted in both Anjouan and Ngazidja.

8. In December 2001 voters backed a new constitution that kept the three islands together as one country but gave each more autonomy in a newly established Union of the Comoros. This vote was the outcome of a process of international mediation that continued in the years leading up to the presidential elections of May 2006. The greater autonomy of each island was underscored politically by the elevation of island leadership to presidential status, greater island representation at most levels of national government, and the creation of island cabinet structures paralleling those of the national government. In practice, however, a disorderly process of creating new government structures and conflict about competencies between Union and island governments have left many questions about the new federal system unresolved.

9. Fiscal decentralization became a pillar of the political consensus for national reconciliation. Control over public finances had been at the heart of Comoros’s political conflicts. On the principle that each island can best select local expenditure priorities and monitor their execution, expenditure decision-making was gradually devolved to the islands, starting with health, education, and infrastructure maintenance. The Union government was made responsible for expenditures in the national interest (defense, diplomacy, major infrastructure projects).

10. A revenue-sharing agreement was signed in 2003 and put in place for the 2005 fiscal year. Under the mechanism, each island retains some revenues (recettes propres, mostly property taxes and specific excises and fees) and the rest go into a common account at the central bank. This account is debited by the three islands and the Union according to fixed percentages, after deductions for national expenditures for external debt service, pension fund contributions, and other national charges.

B. Recent Experience with Fiscal Decentralization

11. Given the geographical and political realities, decentralization plays a more prominent role in Comoros than in other Sub-Saharan African (SSA) countries. While political decentralization has been promoted in many African countries, in practice fiscal power has often remained concentrated. A World Bank survey of progress with decentralization in 30 SSA countries (not including Comoros) ranks how uneven progress with political, administrative, and fiscal decentralization has been and how fiscal decentralization has trailed the other two (Ndegwa, 2002). In Comoros, the relative autonomy of the island governments (particularly Anjouan and Moheli) is partly determined by geography; long distances between islands and very high transport costs would make central control of fiscal operations difficult even if fiscal decentralization had not been made an explicit part of the national reconciliation process.

12. The economic rationale for decentralization is that it makes allocation of public expenditures more efficient and prevents regional inequities in that local decision-makers are usually more aware of local conditions and more responsive to local needs (Musgrave, 1969). However, there are potential drawbacks: For instance, decentralization may be used to pursue political objectives through local patronage, and fragmentation of expenditure may be more costly because of loss of economies of scale (Tanzi, 1996, and 2002). There is also the danger that local governments will deliberately pursue unsustainable levels of expenditure using political leverage with a central government that needs their cooperation (Breton, 2002). 4

13. In practice, decentralization is often driven by politics, as was the case in Comoros. In light of the experience with the 1997–2001 secessionist crisis, decentralization was considered critical for national reconciliation, notwithstanding the cost of creating equivalent civil service posts for each of the four governments (Union and three islands). Moreover, the scope for economies of scale of a fully centralized structure was limited by the geographic fragmentation across relatively distant islands.

14. The disorderly process of decentralization and creation of new government structures after 2001 have caused civil service payrolls to swell. Although data on island government civil service rosters are not comparable in annual time series, there is evidence that payrolls increased significantly. According to a former Minister of Finance, the number of civil servants increased from 6,028 in 1994 to 10,027 in 2005.5 The total wage bill, at about 8 percent of GDP in 2005 and 54 percent of revenues, is high by regional standards. 6 While time series data are not fully comparable, the wage bill appears to have declined somewhat from the early 1990s, suggesting that average salaries were cut in response to swelling payrolls and constant financial resources.

Public sector employment is much higher than in the early 1990s, but not the total wage bill.

Sources: Comorian authorities and Fund staff estimates.

15. The Comoros revenue-sharing mechanism is highly asymmetric. In theory, the customs and tax authorities for each of the three islands transfer all revenues designated for distribution to the revenue-sharing account, from which all four governments (Union and islands) are to receive allocations based on fixed percentages. In practice, the sharing system involves two parties with significant revenues (Union and Anjouan) and two with almost no revenue (Ngazidja and Moheli). 7 In this system, the Union has collected the lion’s share of revenues, Anjouan has retained a large share of its revenue and broken roughly even in the redistribution system, and the two other islands as net recipients of transfers have been highly dependent on the redistribution mechanism. 8 Another asymmetry in the revenue-sharing mechanism is that virtually all revenue collected by the four governments is designated for sharing, and only a marginal share is designated as recettes propres for retention at the island level.

The Union is the main contributor and recipient in the revenue-sharing mechanism

(2005 data, in percent of GDP).

Sources: Comorian authorities and Fund staff estimates.

Allocation ratios from revenue-sharing mechanism

(2006 Bugdet Law)

Sources: 2006 Budget Law and Fund staff calculations.

Revenues for distribution and allocation

(2006 Budget Law, in percent of GDP)

16. The tight budgetary envelope has contributed to persistent interisland tensions over revenue-sharing. The pace of revenue growth (4 percent annually between 2002 and 2005) has not been sufficient to keep up with the multiple expenditure needs of the four governments and also significantly reduce the vast arrears accumulated in previous years. Moreover, there has been very little external budgetary support. The three islands and the Union government have thus found themselves competing for the limited resources available to address their pressing budgetary needs.

17. The Comoros revenue-sharing mechanism suffers from free rider and moral hazard problems. With the most important types of revenue designated for the sharing mechanism, the incentive for each government to maximize revenue collection is much reduced. This incentive problem is particularly severe for the islands, whose percentages in the redistribution scheme are relatively low. Moreover, given the incentives to hide revenues from the redistribution arrangement, there has been mutual mistrust between the Union and island governments. Regarding expenditure, the incentive problems are less pronounced as long as redistribution follows the agreed percentages. However, given some degree of discretion in the application of the redistribution mechanism, incentives for the island governments to cut spending commitments are reduced.

18. Domestic arrears have increasingly dominated fiscal policy and have become a major point of contention. Comoros has not been current on its budgetary commitments for decades. Political life is dominated by the urgency to catch up on overdue salaries. In early 2006, civil service wage arrears were on average four months overdue, but there are instances of salaries being overdue for over five years. The situation was more acute in Moheli (8 months average) than in Anjouan (3 months). Given that civil service wages, meager as they may be, are the sole source of cash earnings for many Comorian families, settling arrears is a constant social and political priority.

19. Capacity constraints in budgetary accounting have been exacerbated by the lack of interisland cooperation. Fiscal policy in Comoros effectively operates with four interlinked budgets, one for the Union and three for the islands. Consolidated data on all fiscal operations are prepared only infrequently, and because data transmission is often manual, the compilation of a full picture of budget execution requires expensive interisland travel for budget officials. Moreover, the data are often inaccurate and inconsistent because the four governments have different methodologies and there is insufficient information-sharing. This has led to chronic arrears, poor expenditure targeting, volatile revenues, and relatively low levels of foreign aid.

20. The significant progress in interisland cooperation in public finances that was made in drafting the 2005 budget, collapsed in the run-up to the 2006 presidential elections. As a result, new wage arrears were incurred and longstanding grievances on expenditure priorities were reignited. There were allegations that the revenue-sharing mechanism was being circumvented by several governments. Interisland cooperation came to a virtual halt just before the May 2006 election. Besides the universal pressures on incumbent governments to spend ahead of an election, collection of customs revenues in the port of Moroni (all designated for revenue sharing) plunged before the transfer of power. The island governments complained that the revenue-sharing arrangement was not being honored and they were being deprived of their fair share of revenues. Anjouan ceased to participate in joint meetings and the revenues it contributed for the first months of the year were well below expectations.

21. The new government that took power in May 2006 sought to restore cooperation and enhance the decentralization arrangements. To show its commitment to cooperation based on renewed trust and accountability, it set up enquiry commissions into the previous customs and tax administrations and into the state rice- and fuel-importing parastatals. Legal action was taken against previous government officials and state managers suspected of irregular activities. The government also reached agreement with the three islands on a strengthened revenue-sharing mechanism and an administrative structure that would enhance the transparency of revenue agencies.

C. The New Revenue-Sharing Arrangement

22. One of the first acts of the new Union government was to strengthen the revenue-sharing arrangement to regain the endorsement of the island governments. The goal was to include provisions for making the arrangement transparent and self-enforcing to all parties. While the broad principles and shares of the previous arrangement were retained, the new arrangement went to greater lengths to spell out the revenue-sharing mechanisms and preempt ambiguities—and to ensure that wages would be paid regularly.

Source: Comorian authorities.

23. It was reaffirmed that all shared government revenues should go into a single special account at the central bank; the practice of multiple government revenue-receiving accounts was abolished. The central bank will retain fixed percentages for external debt service (20.1%) and pension (5.5%) payments. The remainder is to be shared as follows: Union (37.5%), Ngazidja (27.4%), Anjouan (25.7%) and Moheli (9.4%). Balances due are to be credited to each government’s account at the close of each day, rather than sporadically as before. Each island’s own revenues are to be deposited in its own account with full disclosure to the Union and other islands. The new arrangement also stipulates how much each entity is to pay out for salaries (60–80% of total receipts) to prevent neglect of salary payments or minimum operating expenditures.

24. Compliance with the arrangement by all parties is to be achieved by greater transparency and mutual control. Daily reports on balances are made available and island representatives have access to central bank information at all times. The Union government in turn is placing representatives with each island government to monitor their reporting and assist with communications.

25. So far the experience with the new revenue-sharing arrangement has been positive. As of August 2006, all parties were visibly committed to its functioning. A revised budget for 2006 for the Union and the islands was approved on the basis of figures consistent with the smooth functioning of the revenue- sharing arrangement and full disclosure by each participant. Moreover, the four Ministers of Finance and the interisland budget committee have been meeting regularly each month to coordinate fiscal policy.

D. Policy Implications and Challenges

26. Fiscal decentralization will remain a pillar of national reconciliation in Comoros. Apart from the political context, geographic dispersion of the islands would in any case make a fully centralized structure expensive. Hence, there is a clear economic rationale for devolving a significant share of fiscal administration and policy decisions to the island level despite the small size of the country.

27. Inadequate interisland coordination and insufficient resources in the context of fiscal decentralization have aggravated capacity constraints in public administration. The country’s relatively large civil service reflects a political system that necessitates a costly and multilayered public administration. Given limited fiscal revenues, this has prevented adequate salaries for qualified technical staff and led to chronic wage arrears. As a result, institutional capacity has remained very low and government services have been highly constrained. Moreover, the decentralized structure creates additional needs for information sharing and data consolidation, which is complicated by a poor communications infrastructure and still insufficient interisland cooperation. This information gap has severely hampered the monitoring of budget execution and the formulation of economic policies. It will therefore be critical to improve interisland coordination and information sharing, while also unifying certain government functions such as accounting and statistics, in order to strengthen institutional capacity and policy implementation.

28. To make decentralization work better in Comoros, more revenue and expenditure responsibilities could be devolved to the islands. This could help address existing free rider and other incentive problems. One option would be to classify more revenues as recettes propres, allowing each government to retain more of their own revenue but also giving the islands more responsibility to finance their own expenditure. This would be consistent with Comoros’s I-PRSP, which identifies priority expenditures in the education and health sectors as the first to be devolved to the islands. Doing so will be complex, given the small scale of expenditure at the island level and difficulties in coordination at the national level.

29. The envisaged increase in external assistance may also have implications for decentralized expenditure. Although increased aid has not yet materialized, the pledges made at the 2005 donors’ conference could lead to significantly higher external assistance to help implement the I-PRSP. The practice has been for donors to implement projects in any of the islands, while the government co-finances some of them with symbolic amounts. Project execution is largely left to donors and maintenance is rarely budgeted once projects are completed. Going forward, as responsibility for project execution is increasingly shifted from donors to the country authorities, the challenge will be to find a mechanism that balances the competing wishes of the four governments with the need to channel external funds into those projects (and locations) where economic and social returns are highest.

30. In sum, fiscal decentralization has been a mixed blessing for Comoros. It is vital to national reconciliation and is a natural result of geographic dispersion, but it has also created significant incentive problems for revenue collection, aggravated data and staffing problems, and imposed more administrative layers and costs. Looking ahead, there are potential benefits, political and economic, for a country consisting of small islands to draw from flexible and locally focused public administration structures, particularly in delivering services. However, as this devolves responsibilities to the island level it will demand better monitoring and information sharing as well as a continuous close policy dialogue and a national consensus.

Comoros: Consolidated Fiscal Operations and Union and Island Governments, 2004–05
20042005
ConsolidatedUnionNgazidjaAnjouanMoheliConsolidatedUnionNgazidjaAnjouanMoheli
(in percent of GDP)
Revenues and grants, after transfers from federation account18.412.32.13.30.820.112.33.53.50.8
Revenue collected15.612.00.43.10.115.712.00.33.20.2
Taxes13.510.30.32.80.111.68.70.32.50.1
Of which: Taxes on income, profits, and capital gains2.52.30.00.20.04.11.70.22.20.0
Of which: Taxes on goods and services3.32.30.20.90.01.20.70.10.30.1
Of which: Taxes on international trade7.45.60.01.80.16.26.20.00.00.0
Nontax revenues2.11.70.10.30.04.03.20.10.70.1
Distribution of Revenue
Revenue allocated to the Federation−7.5−7.20.0−0.20.0−10.7−9.60.0−1.10.0
Revenue allocated from the Federation7.54.81.60.40.710.95.73.11.40.7
Available revenue after Federation transfers15.69.62.03.30.815.88.13.53.50.8
External grants2.82.70.10.00.04.34.30.00.00.0
Total expenditures and net lending20.112.43.43.60.819.912.03.63.30.9
Current expenditures15.78.13.43.40.815.47.73.63.20.9
Primary current expenditures14.46.83.43.40.813.76.03.63.20.9
Salary, wages and pensions8.83.12.62.40.68.42.72.72.40.6
Goods and services4.22.80.60.60.23.42.00.70.40.2
Transfers and subsidies1.40.90.10.40.01.91.20.20.40.0
Interest on debt0.90.90.00.00.00.80.80.00.00.0
Technical assistance0.40.40.00.00.00.40.40.00.00.0
Foreign-financed project assistance0.00.00.00.00.00.50.50.00.00.0
Capital expenditure4.44.30.00.10.04.54.40.00.10.0
Domestically financed1.81.60.00.10.00.90.80.00.10.0
Externally financed2.62.60.00.00.03.63.60.00.00.0
Primary balance−0.51.2−1.4−0.30.00.70.8−0.20.2−0.1
Repayment of Arrears−2.9−2.3−0.4−0.30.0−2.5−1.7−0.5−0.20.0
Domestic−2.9−2.2−0.4−0.30.0−2.5−1.7−0.5−0.20.0
of which: salaries, wages, and pensions−0.6−0.80.00.30.00.00.00.00.00.0
External0.00.00.00.00.00.00.00.00.00.0
Accumulation of Arrears4.32.11.30.80.02.40.80.90.40.2
Domestic3.71.71.30.70.02.00.50.90.40.2
External0.50.50.00.00.00.40.40.00.00.0
Financing0.60.60.00.00.00.70.70.00.00.0
Sources: Ministries of Finance of the Union and autonomous islands and Fund staff estimates
Sources: Ministries of Finance of the Union and autonomous islands and Fund staff estimates
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Table 1.Comoros: Gross Domestic Product by Sector at Current Market Prices, 2000–05(In millions of Comorian francs)
Economic Activity200020012002200320042005
Agriculture, livestock, fishing, and forestry52,34660,46365,84671,49273,14178,110
Manufacturing4,8875,5295,7316,1746,3436,666
Electricity, gas, and water1,7381,9272,0002,1482,2142,292
Construction and public works5,7946,7247,4859,6688,9607,876
Trade, hotels, bars, and restaurants 1/21,82423,24024,83923,93824,47427,261
Banks, insurance, REB, and STE 2/6,0376,9507,4828,0318,2928,698
Transportation and communications4,4985,0155,3625,7829,71814,111
Government departments12,39513,46814,32614,90515,34015,854
Other services189661,0092,477114130
Less: imputed banking production1,8982,3682,7863,1794,9997,886
GDP at market prices107,811121,015131,293141,437143,596153,112
Sources: Directorate of Statistics; and Fund staff estimates.

Including import duties and taxes.

REB = real estate business, and STE = services to enterprises.

Sources: Directorate of Statistics; and Fund staff estimates.

Including import duties and taxes.

REB = real estate business, and STE = services to enterprises.

Table 2.Comoros: Gross Domestic Product by Sector at 1990 Constant Prices, 2000–05
Economic Activity200020012002200320042005
(In millions of Comorian francs)
Agriculture, livestock, fishing, and forestry36,88339,21840,99942,34542,56844,438
Manufacturing3,4433,5863,5683,6573,6923,793
Electricity, gas, and water1,2251,2501,2451,2721,2881,304
Construction and public works4,0834,3624,6605,7265,2144,480
Trade, hotels, bars, and restaurants 1/15,37715,07415,46614,17914,24415,509
Banks, insurance, REB, and STE 2/4,2544,5084,6594,7574,8264,948
Transportation and communications3,1693,2533,3393,4255,6568,028
Government departments8,7338,7368,9208,8288,9289,019
Other services133436281,4676674
Less: imputed banking production1,3371,5361,7351,8832,9104,486
GDP at market prices75,96478,49381,75083,77383,57287,107
Agriculture, livestock, fishing, and forestry14.26.34.53.30.54.4
Manufacturing11.94.2−0.52.51.02.7
Electricity, gas, and water7.42.0−0.42.21.31.2
Construction and public works−11.76.86.922.9−8.9−14.1
Trade, hotels, bars, and restaurants 1/−18.8−2.02.6−8.30.58.9
Banks, insurance, REB, and STE 2/29.46.03.32.11.52.5
Transportation and communications4.82.62.62.665.141.9
Government departments−5.20.02.1−1.01.11.0
Other services−60.8−67.91374.0133.5−95.512.0
Imputed banking production29.414.813.08.554.554.2
GDP at market prices1.43.34.12.5−0.24.2
Sources: Directorate of Statistics; and Fund staff estimates.

Including import duties and taxes.

REB = real estate business, and STE = services to enterprises.

Sources: Directorate of Statistics; and Fund staff estimates.

Including import duties and taxes.

REB = real estate business, and STE = services to enterprises.

Table 3.Comoros: Source and Use of Resources at Current Market Prices, 2000–05(In millions of Comorian francs)
200020012002200320042005
Public consumption14,49519,71920,53819,29719,27518,678
Private consumption99,468107,612116,030130,309139,480154,245
Gross fixed capital formation10,88212,16514,45714,57513,43814,253
Exports of goods and services18,04418,78320,65422,28018,17019,102
Imports of goods and services−35,078−37,264−40,385−45,024−46,768−53,166
GDP at market prices107,811121,015131,293141,437143,596153,112
Factor income182392−394−588−856−661
Gross national product109,032121,395128,586137,838144,995149,813
Sources: Directorate of Statistics; and Fund staff estimates.
Sources: Directorate of Statistics; and Fund staff estimates.
Table 4.Comoros: Source and Use of Resources at 1990 Constant Prices, 2000–05(In millions of Comorian francs)
200020012002200320042005
Public consumption10,21312,79012,78811,43011,21810,626
Private consumption70,08569,80072,24677,18181,17787,751
Gross fixed capital formation7,6677,8919,0018,6337,8218,109
Change in stocks
Exports of goods and services12,71412,18312,86013,19610,57510,868
Imports of goods and services−24,716−24,170−25,146−26,667−27,219−30,247
GDP at market prices75,96478,49381,75083,77383,57287,107
Factor income128254−245−348−498−376
Gross national product76,82478,73980,06581,64184,38685,230
Sources: Directorate of Statistics; and Fund staff estimates.
Sources: Directorate of Statistics; and Fund staff estimates.
Table 5.Comoros: Food Crop Production, 2000–05(In metric tons, unless otherwise indicated)
200020012002200320042005
Cereals
Paddy1,1741,1701,1651,1611,1451,153
Maize6,4039,0919,1469,2029,2589,315
Tubers
Cassava40,88942,12542,70743,29042,80443,788
Taro18,61818,32618,64218,96019,28319,611
Yams18,61618,82819,20419,58919,97920,379
Sweet potatoes15,88515,82216,12716,43216,43516,809
Vegetables
Ambrevade beans25,66925,24425,72926,21326,70627,209
Ambérique beans1,5831,6901,7221,7581,7921,828
Tomatoes5,2905,5865,7115,8325,9616,093
Potatoes506518531543557570
Peanuts2,5762,4452,4772,5112,5442,578
Onions9129371,479839858875
Miscellaneous1,5251,2841,1121,3391,3671,396
Fruits
Breadfruit28,879
Bananas44,67843,79744,44545,09343,06544,551
Coconuts (thousands)80,34075,45176,82352,12739,79340,503
Miscellaneous3,3003,3543,4093,4653,5213,578
Source: Directorate of Agriculture, Ministry of Agricultural Production, Marine Resources, and Environment.
Source: Directorate of Agriculture, Ministry of Agricultural Production, Marine Resources, and Environment.
Table 6.Comoros: Livestock, 2000–05(In numbers of head)
200020012002200320042005
Cattle 1/50,00050,00055,00050,00063,82860,637
Sheep20,00020,00021,00021,00016,27117,085
Goats 2/170,000170,000175,000180,00095,830119,788
Poultry 2/220,050235,050260,050300,050310,000340,000
Semi-industrial aviculture
Meat 2/50,00060,00080,000100,000147,000147,000
Eggs10,00015,00020,00040,00080,000100,000
Source: Directorate of Breeding, Ministry of Agricultural Production, Marine Resources, and Environment.

The number of cattle declined in 2004 owing to a disease.

Since 1999 data based on new agricultural survey.

Source: Directorate of Breeding, Ministry of Agricultural Production, Marine Resources, and Environment.

The number of cattle declined in 2004 owing to a disease.

Since 1999 data based on new agricultural survey.

Table 7.Comoros: Production of Meat, Fish, and Dairy Products, 2000–05
200020012002200320042005
Meat and fish (in metric tons, unless other inidated)
Cattle1,6301,6602,2261,7002,0552,017
Sheeps343436362829
Goats314314345415524564
Poultry214233266318166198
Fresh fish13,73014,80915,38715,96516,00016,200
Miscellaneous
Milk (in thousands of liters)4,0014,0014,3314,0014,2083997
Eggs (in thousands)6,0017,0018,00112,00120,50024,500
Source: Directorate of Breeding, Ministry of Agricultural Production, Marine Resources, and Environment.
Source: Directorate of Breeding, Ministry of Agricultural Production, Marine Resources, and Environment.
Table 8.Comoros: Export Crop Production, 2000-(In metric tons, unless otherwise indicated)
200020012002200320042005
Vanilla323241323295286395
Clove258227252869301326313000
Clove buds303320337354309351
Ylang-ylang 1/
Flowers (units)212121203074227921202350
404058434047
Sources: Comorian Office of Vanilla; and Directorate of Projects, Ministry of Agricultural Marine Resources, and Environment.
Sources: Comorian Office of Vanilla; and Directorate of Projects, Ministry of Agricultural Marine Resources, and Environment.
Table 9.Comoros: Prices of Export Crops, 2000–05(In Comorian francs per kilogram)
200020012002200320042005
Vanilla 1/
Producer price (green vanilla) 2/2,000-2,5005,7505,0008,9003,500750
Export price, f.o.b. (dried vanilla)25,81845,04051,00090,00031,22011,353
Ylang-ylang
Producer price (flowers)217264153150150150-200
Export price, f.o.b. (essence)22,17524,97514,69420,95121,200
Cloves
Producer price900-1,2001,0891,9031,177600-900900-1000
Export price, f.o.b.1,2932,2001,3076001,000
Sources: Comorian Office of Vanilla; and General Directorate of Customs.

The yield from 5 kilograms of green vanilla is about 1 kilogram of dried vanilla.

Floor prices.

Sources: Comorian Office of Vanilla; and General Directorate of Customs.

The yield from 5 kilograms of green vanilla is about 1 kilogram of dried vanilla.

Floor prices.

Table 10.Comoros: Cost Structure of Vanilla Exports, 2001–05(In Comorian francs per kilogram)
Cost elements20012002200320042005
Producer level
Producer price4,0005,0008,9003,500750
Collectors’ commission4005001,11335075
Surplus at the producer level50250
Total price for green vanilla4,4005,50010,0133,9001,075
Total price for dried vanilla 1/22,00027,50050,06319,2505,375
Preparation level
Preparation costs of green vanilla1,5002,0502,5011,385975
Fixed margin at the preparation level2,5003,0007,5002,000538
Surplus at the preparation level3,9163,8326,4641400
Total price for prepared vanilla29,91636,38266,52822,7756,887
Exporter level
Preparation costs of dried vanilla1,6801,9753,6031,563
Financial costs2,8073,3105,9372,179785
Customs duties and other taxes 2/3,5254,0609,6321,937
Transportation and insurance9181,0201,800624228
Fixed margin at the exporter level2,2542,5002,5002,0001,027
Surplus at the exporter level6,0003,29301400
Total f.o.b. cost at Moroni Port47,10052,00190,00031,22011,353
Total f.o.b. cost at Moroni Port (US dollars)861002007730
Average actual export price (US Dollars) 3/82113251116
Sources: Comorian Office of Vanilla; and General Directorate of Customs.Exchange rate Comorian franc per US dollar 549.2725802 521.1204076 437.6105637 404.1871071

The yield from 5 kilograms of green vanilla is about 1 kilogram of dried vanilla.

Includes contributions to the Fonds de Solidarité Vanille (CF1,000/kg). In 2003 it includes a special contribution for social projects of CF 3,232/kg.

For 2004 consists of: 30 tons at $223.7/kg; 8 tons at $140.0/kg; 52 tons at $ 49.5/kg

Sources: Comorian Office of Vanilla; and General Directorate of Customs.Exchange rate Comorian franc per US dollar 549.2725802 521.1204076 437.6105637 404.1871071

The yield from 5 kilograms of green vanilla is about 1 kilogram of dried vanilla.

Includes contributions to the Fonds de Solidarité Vanille (CF1,000/kg). In 2003 it includes a special contribution for social projects of CF 3,232/kg.

For 2004 consists of: 30 tons at $223.7/kg; 8 tons at $140.0/kg; 52 tons at $ 49.5/kg

Table 11.Comoros: Production and Consumption of Electricity, 2000–05
200020012002200320042005
Production (in millions of kilowatt/hours) 1/35.032.033.935.235.836
Consumption (in millions of kilowatt/hours)18.030.021.723.434.035.9
Installed capacity (in megawatts)12.712.711.912.225.5
Anjouan1.31.31.91.35.8
Ntrenani 2/1.31.31.91.35.8
Domoni0.00.00.00.00.0
Dima0.00.00.00.00.0
Mohéli0.00.00.60.61440.0
Grande Comore12.712.79.410.418.3
Foumbouni et M’Beni2.42.40.20.21.3
Voidjou0.60.68.09.017.3
Ouzioini9.49.40.10.1620.0
Dembéni0.30.30.20.20.2
Vouvouni0.80.8800.0
Bandramadji0.10.150.0
Source: Electricity and water company (MAMWE).

The difference between production and consumption reflects power losses and fraud.

Source: Electricity and water company (MAMWE).

The difference between production and consumption reflects power losses and fraud.

Table 12.Comoros: Indicators of Tourism Activity, 2000–05
200020012002200320042005
Tourist accommodation available 1/
(number of beds)820820820750836836
Number of visitors23,89319,35618,93620,57217,60319,551
Mohéli845
Anjouan195
AL-AMAL100
LA PAILLOTTE65
AUTRES30
Grande Comore
MOIFAKA204207243
ARCADES20425328012098
By origin (in percent of total) 2/
Europe39.935.850.17372.7
Of which: France29.43047.965.962.1
Africa and Indian Ocean66.2614622.319.9
Of which: South Africa62.625
Other countries3.23.123.84.77.4
Of which: Gulf states1.61.522.9
Visitor overnights161,251135,492132,552144,004123,221136,857
COMOTEL 3/
MOIFAKA760878721
GALAWA 4/133,801
Other 5/33,450
Average length of stay
(in days)777777
COMOTEL7.07.07.0
MOIFAKA4.04.03.0
ARCADES7.06.08.05.04.0
GALAWA7.07.07.0
Average room occupancy rate (in percent)1515151515
Grande Comore
COMOTEL20.0
ARCADES18.017.026.014.010.0
GALAWA30.0
Turnover
(in billions of Comorian francs)3.52.82.7
Grande Comore
COMOTEL0.7
Le Moroni
ARCADES0.10.10.10.050.03
GALAWA2.8
MOIFAKA0.010.010.01
Source: General Directorate of Tourism, Ministry of Transportation and Tourism.

No official data have been provided by the Galawa Hotel.

2003 and 2004 based on Anjouan data.

Includes the Ylang-Ylang, Coelacanthe, and Al Amal hotels.

The Sun Resorts Group includes the Galawa, Maloudja, and Itsandra hotels.

Includes the Kartala, and, since 1986, the Relais de Singali hotels.

Source: General Directorate of Tourism, Ministry of Transportation and Tourism.

No official data have been provided by the Galawa Hotel.

2003 and 2004 based on Anjouan data.

Includes the Ylang-Ylang, Coelacanthe, and Al Amal hotels.

The Sun Resorts Group includes the Galawa, Maloudja, and Itsandra hotels.

Includes the Kartala, and, since 1986, the Relais de Singali hotels.

Table 13.Comoros: Indicators of Population, Employment, and Education, 2000–05
200020012002200320042005
Population and employment
Total population (in thousands)539550562576588600
Labor force (in thousands)138.0141.0143.0146148.0151
Of which: wage earners
Unemployed (in thousands) 1/21,821,421,120,820,420,1
Unemployed (in percent of labor force)15,815,314,814,313,813,3
Education (number of pupils)
Primary enrollment91,55394,24994,405103,334108,453
Public84,46883,87586,90693,76399,424
Private7,08510,37410,4999,5719,029
Secondary enrollment29,12533,04935,19338,20338,763
Vocational schools 2/1594969
Higher education 3/6491,2271,7072,087
Source: Directorate of Statistics; Ministry of Health, Social Affairs, and Education.

From 2003, data is based on the 2003 population census.

For education, data for 1999 corresponds to the 1998/1999 year.

Includes the training school for teachers. 2004 data is from the University of Comoros, excluding Anjouan.

Source: Directorate of Statistics; Ministry of Health, Social Affairs, and Education.

From 2003, data is based on the 2003 population census.

For education, data for 1999 corresponds to the 1998/1999 year.

Includes the training school for teachers. 2004 data is from the University of Comoros, excluding Anjouan.

Table 14.Comoros: Consumer Price Index (Base Year 1999), 2000–05 1/
200020012002200320042005
Foodstuffs, drinks and tobacco105.7109.4116.9120.7124.5125.2
Of which
Unprocessed cereals101.4103.3106.8111.4115.7114.4
Flours, and semolina104.5114.5114.6113.3118.5119.5
Meat102.199.9104.2100.1103.5101.7
Fish103.5106.1104.4104.4116.2112.3
Milk and dairy products136.1120.0118.7116.2122.3109.2
Edible oils90.882.992.693.498.289.9
Fruits103.186.6105.5163.5164.8260.6
Vegetables102.7125.6128.3163.2154.0144.9
Potatoes, manioc, other tubercules106.6134.0174.1159.0172.7172.8
Clothing and footware109.2109.6104.296.1126.8137.4
Rent, water, electricity, gas and other combustibles104.0117.6116.2133.9134.9142.8
Of which
Other combustibles112.5143.1169.4185.4153.5184.8
Furniture, and electric appliances120.3124.7116.8106.9102.1111.2
Health care97.5117.2117.2117.2136.2131.3
Transportation120.0122.5120.4128.5135.2134.4
Entertainment85.9108.197.2111.0177.3177.5
Education100.6119.3110.7112.1115.1117.6
Hotels, coffee shops and restaurants137.8154.2154.1157.0175.9200.2
Other good and services106.3106.3104.7105.0110.1115.2
Total105.9111.8115.8120.1125.5128
Memorandum item:
Consumer price index5.95.63.53.84.53.2
Source: Directorate of Statistics.

Consumer Price Index prior to 2000 not available due to change in the consumption basket in 2000.

Source: Directorate of Statistics.

Consumer Price Index prior to 2000 not available due to change in the consumption basket in 2000.

Table 15.Comoros: Prices of Essential Goods, 2000–05 1/(In Comorian francs per unit, unless otherwise indicated)
200020012002200320042005
Rice (kilogram)
Unit value of imports122120121105154
Retail price250250260264300303
Annual change (in percent)0.00.04.01.513.61
Retail/import price2.05222.511.95
Sugar (kilogram)
Unit value of imports270279217202165
Retail price500450353365258300
Annual change (in percent)25.0−10−223.4−29.316.3
Retail/import price1.851.611.631.811.56
Flour (kilogram)
Retail price300300300296300300
Annual change (in percent)20.00.00.0−1.31.40
Salt (kilogram)150150196147150157
Retail price0.00.030.7−25.02.04.7
Cement (metric tons)
Unit value of imports36,00035,00036,75035,00036,000
Retail price70,00075,00079,500783008000089,167
Annual change (in percent)−6.77.106.00−1.52.211.5
Retail/import price1.942.142.162.242.22
Petroleum products (liters) 2/
Regular gasoline390-450450450480500567
Diesel 3/230-250250300300300500
Kerosene 4/130-200163200
Electricity (kilowatt-hours) 5/
Retail price120120120120120121
Water (cubic meters)
Retail price200-250220220220220220
Source: Directorate of Statistics.

Unit values of imports are calculated on the basis of imports, c.i.f.

Average retail price per liter at new stations.

The lower price is the tax-exempt price paid by the electricity and water company.

The higher price is for jet kerosene, sold only to civil aviation.

The rate imposed on households and the industries.

Source: Directorate of Statistics.

Unit values of imports are calculated on the basis of imports, c.i.f.

Average retail price per liter at new stations.

The lower price is the tax-exempt price paid by the electricity and water company.

The higher price is for jet kerosene, sold only to civil aviation.

The rate imposed on households and the industries.

Table 16.Comoros: Consolidated Government Financial Operations, 2000–05(In millions of Comorian francs, unless otherwise indicated)
200020012002200320042005
Total revenue and grants15,55622,23526,92925,48226,43430,509
Revenues11,01716,90421,52122,33522,44523,972
Tax revenues9,72314,47518,03819,62219,40717,797
Nontax revenues1,2942,4293,4832,7133,0386,175
External grants4,5395,3325,4083,1473,9896,537
Budgetary assistance01,4871,1300153669
Projects (incl. techn.assist.)4,5133,6893,3173,1473,8365,868
Total expenditure and net lending17,61426,59231,69930,34728,84730,425
Current expenditure13,49321,25624,17222,76922,54623,523
Primary current expenditures11,10619,01519,94918,83120,65820,911
Wages and salaries6,0939,61510,70311,49312,63112,872
Goods and services4,1697,7147,9095,2976,0385,160
Transfers8441,6851,3382,0411,9892,879
Interest payments9601,3451,3351,4311,2821,182
External debt8901,2751,2651,3231,1871,048
Domestic debt70707010895134
Foreign-financed project assistance784
Technical assistance1,4278962,8872,507606647
Capital expenditure4,1575,3737,5977,5786,3016,902
Domestically financed investment1305841312,7852,5391,411
Foreign-financed investment4,0274,7897,4664,7933,7625,491
Counterpart funds-financed
Domestic primary balance1,441719−7521,650
Overall balance (commitment basis)−2,058−4,357−4,771−4,865−2,41383
Excluding budget support−2,058−5,844−5,901−4,865−2,566−586
Change in net arrears1,9651,7439692,2261,862−272
Interest on external debt5519168821,001665542
Domestic arrears1,413827871,2251,197−814
Change in Treasury accountsn.a.n.a.125−548
Overall balance (cash basis)−93−2,614−3,802−2,638−426−737
Financing−4,9852,6145,5753,4538291,117
Foreign (net)−4,5754,6036,1893,333262−163
Drawings, PIP (identified)9403,3957,0364,1531,4621,054
Amortization−3,766−2,240−1,603−1,638−1,935−2,152
Arrears (principal)2,9331,237755818735935
Domestic (bank financing, net)−410−1,989−6131205671,279
Privatization revenues
Errors and omissions5,0790−1,774−814−403−380
Financing gap
Memorandum items:(in percent of GDP)
Grants2.84.3
Domestic revenue10.214.016.415.815.615.7
Expenditure16.422.024.221.520.119.9
Non-interest domestic expenditure10.416.215.315.315.214.6
Wages and salaries..8.88.4
Social expenditure8.1
Domestic primary balance−1.0−2.51.10.5−0.51.1
Overall balance (commitment basis)−1.9−3.6−3.6−3.4−1.70.1
excluding budgetary support−4.5−3.4−1.8−0.4
Overall balance (cash basis)−0.1−2.2−2.9−1.9−0.3−0.5
Nominal GDP (in millions of CF)107,811121,015131,293141,437143,596153,112
Sources: Ministry of Finance; and Fund staff estimates.
Sources: Ministry of Finance; and Fund staff estimates.
Table 17.Comoros: Consolidated Fiscal Operations and Union and Island Governments, 2004–05
20042005
UnionNgazidjaAnjouanMwaliUnionNgazidjaAnjouanMwali
(In billions of Comorian francs)
Total revenue and grants, after transfers from federation account17,6002,9574,7381,13818,8855,3145,3271,235
Revenue collected17,2645114,51715318,3645084,836264
Taxes14,8443724,05513613,3934033,829172
Of which: Taxes on income, profits, and capital gains3,28124280102,5952583,33914
Of which: Taxes on goods and services3,2473021,237161,101145490158
Of which: Taxes on international trade and transactions8,04202,5341099,451000
Nontax revenues2,420139462174,9711051,00792
Distribution of Revenue
Revenue allocated to the Federation−10,3830−316−31−14,6920−1,630−58
Revenue allocated from the Federation6,8832,3435079968,6774,8062,1211,029
Available revenue after Federation transfers13,7642,8544,7081,11812,3495,3145,3271,235
External grants3,83610330206,537000
Total expenditures and net lending17,7464,8305,1101,16218,4095,5745,0501,393
Current expenditures11,6434,8304,9121,16211,7305,5744,8651,355
Primary current expenditures9,7554,8304,9121,1629,1175,5744,8651,355
Salary, wages and pensions4,4563,7773,4729274,1524,1203,610990
Goods and services3,9979308812303,1301,127583320
Transfers and subsidies1,30212355951,83532767245
Interest on debt1,2820001,182000
Domestic debt95000134000
External debt1,1870001,048000
Technical assistance606000647
Ext.-financed current expenditures (maintenance and t.a.)0000784000
Capital expenditure6,10301980 06,679018538
Net lending00000000
Primary balance1,668−1,976−402−441,260−259277−158
Overall balance (commitment basis)
Excluding grants−3,982−1,976−402−44−6,060−259277−158
Including grants−146−1,873−372−24476−259277−158
Repayment of Arrears−3,247−541−392−26−2,648−790−374−73
Domestic−3,197−541−392−26−2,648−790−374−73
of which: salaries, wages, and pensions−1,1810385−22
External−500000000
Accumulation of Arrears3,0871,8541,115601,2981,337657320
Domestic2,3731,8541,066607561,337657320
of which: salaries, wages, and pensions1,0931,82990740
External7140490542000
Mouvements comptes du Tresor1080180−548000
Overall balance (cash basis)
Excluding grants−4,034−663339−10−7,95828856189
Including grants−198−56036910−1,42128856189
Financing8280001,117000
Domestic5660001,279000
External262000−163000
Drawings1,4620001,054000
Amortization−1,935000−2,152000
Arrears on principal735000935
Errors and omissions/Financing gap630−56036910−30428856189
Memorandum Items:(In percent of GDP)
Domestic revenue12.00.43.10.112.00.33.20.2
Noninterest domestic primary expenditure6.83.43.40.86.03.63.20.9
Expenditure12.43.43.60.812.03.63.30.9
Primary balance1.2−1.4−0.30.00.8−0.20.2−0.1
Overall balance (commitment basis)−0.1−1.3−0.30.00.3−0.20.2−0.1
excluding grants−2.8−1.4−0.30.0−4.0−0.20.2−0.1
Overall balance (cash basis)−0.1−0.40.30.0−0.90.20.40.1
excluding grants−2.8−0.50.20.0−5.20.20.40.1
Sources: Ministries of Finance of the Union and autonomous islands.
Sources: Ministries of Finance of the Union and autonomous islands.
Table 18.Comoros: Breakdown of Staffing Levels by Ministry, 2000–02(In numbers of staff)
200020012002
Federal Assembly131144
Constitutional Council1521
Office of the President (excludes Defense)200332
National Security1,0091,030
Primature16080
Foreign Affairs (excludes embassies)286346
Embassies
Interior128134
Finance and Budget495496
Economy, planning and trade5146
Infrastructure, Urbanism, and Housing9688
National Education2,2302,455
Rural development158135
Civil service
Health511487
Transport and Tourism10294
Information, Youth, Culture, and Sport6349
Justice and Islamic Affairs 1/184233
Public functions and justice8572
Gouvernorats132118
Other ministries56417
Total6,0936,778
Source: General Directorate of Budget/Civil Service, Ministry of Finance.Note: Data for 2003–05 were not reported by the authorities.
Source: General Directorate of Budget/Civil Service, Ministry of Finance.Note: Data for 2003–05 were not reported by the authorities.
Table 19.Comoros: Breakdown of Staffing Levels by Ministry, 2000–02(In numbers of staff)
200020012002
Federal Assembly363438
Constitutional Council5
Office of the President (excludes Defense)102114148
Foreign Affairs (excludes embassies)838091
National Security118108106
Finance and Budget343310319
Economy, Planning, and Commerce354447
Infrastructure, Urbanism, and Housing837875
National Education1,9651,8392,066
Rural Development0
Production115106100
Health463435417
Transportation and Tourism848278
Information, Youth, Culture, and Sport404949
Justice and Islamic Affairs107116115
Civil Service665952
Office of the Prime Minister5148
Ngazidja Province111105101
Ndzouani Province0
Mohéli Province464638
Public enterprises
Contractuals paid manually
Other ministries
Total of civil servants paid by Ministry of Civil Service3,8663,6533,840
Other public employees
Total of public employees
Source: General Directorate of Budget/Civil Service, Ministry of Finance.Note: Data for 2003–05 were not reported by the authorities.
Source: General Directorate of Budget/Civil Service, Ministry of Finance.Note: Data for 2003–05 were not reported by the authorities.
Table 20.Comoros: Breakdown of the Goverment Wage Bill, 2000–02(In Comorian francs)
2000 1/20012002
160.630162.452
Basic salaries3,6663,683
Allowances9501,050
Function141153
Housing459498
Teaching (teachers)166200
Indemnité de sujétion1929
Indemnité de remise6383
Geographic6356
Other3930
Employer contributions286282
Total4,9345,014
Source: General Directorate of Budget/Civil Service, Ministry of Finance.Note: Data for 2003–05 were not reported by the authorities.

Including embassies.

Source: General Directorate of Budget/Civil Service, Ministry of Finance.Note: Data for 2003–05 were not reported by the authorities.

Including embassies.

Table 21.Comoros: Consolidated Net Statement of Public Enterprises, 2000–05 1/(In millions of Comorian francs)
TurnoverChange in StocksWages and SalariesPurchasesTaxesFinancial ChargesOther ExpendituresTotal ExpendituresSurplus or Loss 2/
Import monopolies
SCH3/
20008,106−592113,8302,577473,2578,00920
20019,4232382034,299773402,9128,465958
20029,267−3492054,591316403,8178,620647
200310,737−1211924,5833,432353,4319,6741,062
200411,2411132215,9222,7984010,730552
200512,479
ONICOR
20004,3880524,135281264,32772
20013320343,093151133,24694
20023,4590373,204371803,431121
20033,7960273,465781333,640156
20043,5550293,366815243,442113
20054,4870364,31048844,442104
Hahaya airport (AIMPSI)
20007312210171544135961−92
20017220227157645130837−79
20026017217126238104717−85
2003600−724513938185888−253
2004487−126873361318
2005
Public utilities
SNPT
20004,754215508694973283862,6522,102
20014,679175763905103147932,6002,079
20025,305−56324656501361,0042,8822,423
20036,902−427267746131581,2863,5573,345
20048,255158241,0258151621,9244,7653,490
Comores Télécom 4/
20058,829−336727682,162301,4825,0803,749
SNPSF 4/
20054522425263884
SOCOPO-TRAM
20009856286118924895728
20011,1948278626881351,16232
200276640559398212777−11
20032621043834774266−4
200418177200431315328
2005
MAMWE 5/
20002,699−405931,71289881,216−1,041
2001
20022,0573771,1866344952,068−70
20032,197−253971,2406629712,465−508
20043,087−244661,6929339613,407140
20053,591−494252,50410883283,318168
Sources: Public enterprises listed below; and Fund staff estimates.Notes:

SCH (Comorian Hydrocarbons Company); ONICOR (National Rice Imports and Marketing Office); SNPT (Post and Telecommunications Office); SNPSF (Post and financial services); SOCOPOTRAM (Comorian Ports Establishment); and MAMWE (Water and Electricity Company).

Before provisions for amortization.

2005 results are not yet available.

During the first quarter of 2005, the activities were under SNPT.

From 2003, the MAMWE activites and services are limited to the islands of Ngadijza and Moheli.

Sources: Public enterprises listed below; and Fund staff estimates.Notes:

SCH (Comorian Hydrocarbons Company); ONICOR (National Rice Imports and Marketing Office); SNPT (Post and Telecommunications Office); SNPSF (Post and financial services); SOCOPOTRAM (Comorian Ports Establishment); and MAMWE (Water and Electricity Company).

Before provisions for amortization.

2005 results are not yet available.

During the first quarter of 2005, the activities were under SNPT.

From 2003, the MAMWE activites and services are limited to the islands of Ngadijza and Moheli.

Table 22.Comoros: Monetary Survey, 2000–05(In millions of Comorian francs; end of period)
200020012002200320042005
Net foreign assets22,71036,97239,32437,58937,05637,442
Central bank21,99934,43938,39937,63737,42035,762
Assets22,95635,83338,79637,86037,58335,948
Liabilities−957−1,394−397−223−163−186
Commercial bank7112,533925−48−3641,680
Assets3,0094,8643,1821,6901,0293,001
Liabilities−2,298−2,331−2,257−1,738−1,393−1,321
Net domestic assets−820−3,643−2,428−2,412−2,977−1,990
Domestic credit12,89111,39912,67113,13312,67013,830
Net credit to government3,2712,0302,2281,6042,1703,468
Bank financing3,2712,0302,2281,6042,1703,468
Credit to government4,1583,2513,3113,4204,2385,157
Government deposits−887−1,221−1,083−1,816−2,068−1,689
Claims on public enterprises50981129516744
Credit to private sector 2/9,5709,27110,33111,43410,33310,318
Other items (net)−13,711−15,042−15,099−15,545−15,647−15,820
Broad money21,89033,32936,89535,17734,07935,452
Money14,11522,93725,32424,79423,36725,383
Currency in circulation7,56412,35512,50311,50511,73011,456
Demand deposits6,55110,58212,82113,28911,63713,927
Quasi-money7,77510,39211,57110,38310,71210,069
Sources: Central Bank of the Comoros; and Fund staff estimates and projections.

Includes Fonds particuliers (special funds).

Excludes bankers’ acceptances.

Sources: Central Bank of the Comoros; and Fund staff estimates and projections.

Includes Fonds particuliers (special funds).

Excludes bankers’ acceptances.

Table 23.Comoros: Summary Statement of the Central Bank, 2000–05(In millions of Comorian francs; end of period)
200020012002200320042005
Foreign assets22,95735,83438,79637,86037,58335,947
Of which
Operations account with French
Treasury20,56833,02234,65832,60931,50025,840
Bank notes (CFA franc area)1,8192,1562,4813,8055,6629,614
Gold8390949390123
SDR holdings71317222
Correspondents771681,096931429
Reserve position with IMF392379344315315324
1171061051015
Claims on Government3,4972,9503,0103,1203,4574,541
Statutory advances2,2782,0742,3502,6363,0294,125
Other claims on Treasury000000
Treasury (IMF account)1,219876660484428416
Claims on deposit money bank505050505050
Other assets5595361,0121,5151,0621,242
Assets=liabilities27,06339,37042,86842,54542,15241,780
Reserve money13,98023,85128,34027,84327,49326,752
Currency in circulation7,56412,35512,50311,50511,73011,456
Cash in banks2631472976612098
Bank for Industry and Commerce deposits5,2289,72213,39314,15613,72112,875
Development Bank deposits8881,5652,0971,9051,7621,470
Public enterprise deposits376250211160853
Government deposits5087125821,1261,269861
Treasury account37225111384583
Government bodies399434426706803233
Food aid servicesn.a.n.a.n.a.n.a.n.a.n.a.
STABEX account 1/2781003623370
Cash at Treasury454545454545
Foreign liabilities9571,395397223163185
Other correspondents128918139144163142
Transactions under way030103
IMF credit8174742587800
Other12000040
Other liabilities11,61813,41413,54913,35413,22613,982
Sources: Central bank of the Comoros; and Fund staff estimates.
Sources: Central bank of the Comoros; and Fund staff estimates.
Table 24.Comoros: Summary Statement of the Bank for Industry and Commerce, 2000–05(In millions of Comorian francs; end of period)
200020012002200320042005
Reserves5,2578,80612,54713,21413,15611,854
Cash2631472976612098
Deposits at the Central bank4,9948,65912,25013,14813,03611,756
Foreign assets3,0094,8643,1821,6901,0293,001
Claims on government300301301300781601
Claims on private sector9,4569,15110,19211,30910,18710,173
Unclassified assets1,6752,1062,0431,7941,9921,991
of which
Bills to be collected1,1891,6331,5441,2761,3671,214
Assets=liabilities19,69725,22828,26528,30727,14527,620
Demand deposits5,6268,95510,65511,0759,70411,226
Time and savings deposits7,3488,84410,2229,7189,7569,088
Time deposits292238478550589557
Savings deposits6,9458,1248,3968,4017,8917,264
Blocked account 1/1114821,3487671,2761,267
Government deposits 2/379509501690798829
Foreign liabilities2,2982,3312,2571,7381,3931,321
Unclassified liabilities4,0484,5874,6305,0845,4945,156
Source: Central Bank of the Comoros.

Deposits required by the Bank for Industry and Commerce for imports under letter of credit.

Principally the Stabilization Fund for Export Earnings.

Source: Central Bank of the Comoros.

Deposits required by the Bank for Industry and Commerce for imports under letter of credit.

Principally the Stabilization Fund for Export Earnings.

Table 25.Comoros: Structure of Interest Rates, 2000–05 1/(In percent)
200020012002200320042005
Central bank rates6.44.94.63.63.53.8
Claims on government6.44.94.63.63.53.8
Deposits from Treasury4.93.43.12.12.02.3
Discount rate
Commercial bank lending rate9.0/15.09.0/15.09.0/15.08.0/14.08.0/14.08.0/14.0
Depositor rates
Demand deposits0.00.00.00.00.00.0
Time deposits 4/3.03.03.53.53.53.0
Savings deposits3.03.03.03.53.53.0
Source: Central Bank of the Comoros.

En-period

Source: Central Bank of the Comoros.

En-period

Table 26.Comoros: Balance of Payments, 2002–05
2002200320042005
(In millions of U.S. dollars unless otherwise indicated)
Current account−3.6−10.1−10.3−12.3
Goods and services−37.9−52.0−72.3−82.1
Trade balance−31.4−39.9−62.0−76.8
Exports (f.o.b.)19.326.718.713.8
Of which: vanilla12.720.98.63.2
cloves4.13.67.37.4
ylang-ylang2.01.52.12.4
Imports (f.o.b.)−50.7−66.7−80.7−90.6
Of which: petroleum products−10.8−13.6−17.9−20.2
Services (net)−6.5−12.0−10.2−5.3
Receipts20.324.227.332.2
Of which: travel10.210.712.514.1
Payments−26.8−36.2−37.5−37.5
Income (net)−0.8−1.3−2.2−2.3
Current transfers (net)35.143.264.172.1
Government5.21.94.77.1
Private29.841.359.465.0
Capital and financial account19.314.47.03.5
Capital transfers5.15.25.48.7
Financial account14.19.21.6−5.2
Direct investment1.01.41.81.9
Net portfolio and other investment13.27.8−0.1−7.1
Government10.45.7−1.2−2.6
Drawings13.59.53.72.5
Amortization−3.1−3.7−4.9−5.2
Banks, net3.12.20.8−4.9
Other−0.4−0.20.30.5
Errors and omissions−11.5−10.7−1.01.2
Overall balance4.2−6.3−4.3−7.6
Financing−4.26.34.37.6
NFA of central bank (- increase)−7.42.20.74.1
Net change in arrears3.14.23.53.5
Exceptional financing
Financing gap
Memorandum items:
Current account (percent of GDP)−1.4−3.1−2.8−3.3
Excluding transfers−15.3−16.5−20.5−22.9
Exports of goods & services (percent of GDP)15.715.812.712.5
Imports of goods & services (percent of GDP)30.831.832.634.7
External public debt
In millions of U.S. dollars231295285266
Of which: arrears65858593
In percent of GDP84.281.180.571.5
Debt service (% of exports of goods & services)14.714.017.616.8
Exchange rate CF/US$ (period average)521438396415
Gross international reserves
In millions of U.S. dollar81979387
In months of imports of goods and services12.511.39.48.2
Nominal GDP (millions U.S. dollar)252323363369
Sources: Comorian authorities, and Fund staff estimates and projections.
Sources: Comorian authorities, and Fund staff estimates and projections.
Table 27.Comoros: Balance of Payments, 2002–05
2002200320042005
(In millions of Comorian francs unless otherwise indicated)
Current account−1,852−4,409−4,090−5,087
Goods and services−19,731−22,744−28,598−34,064
Trade balance−16,367−17,479−24,551−31,878
Exports (f.o.b.)10,05711,6957,3825,719
Of which: vanilla6,6009,1303,4071,342
cloves2,1121,5632,8833,089
ylang-ylang1,0336648251,000
Imports (f.o.b.)−26,424−29,174−31,933−37,597
Of which: petroleum products−5,610−5,949−7,085−8,395
Services (net)−3,364−5,265−4,047−2,186
Receipts10,59710,58510,78813,383
Of which: travel5,3024,6964,9295,865
Payments−13,961−15,849−14,835−15,569
Income (net)−394−588−856−953
Current transfers (net)18,27318,92325,36429,930
Government2,7328521,8512,941
Private15,54118,07123,51226,989
Capital and financial account10,0336,3152,7851,454
Capital transfers2,6762,2952,1373,595
Financial account7,3574,021648−2,141
Direct investment500600700800
Net portfolio and other investment6,8573,421−52−2,941
Government5,4342,515−473−1,098
Drawings7,0364,1531,4621,054
Amortization−1,603−1,638−1,935−2,152
Banks, net1,608974314−2,043
Other−185−68106200
Errors and omissions−5,979−4,668−389486
Overall balance2,202−2,762−1,694−3,147
Financing−2,2022,7621,6943,147
NFA of central bank (- increase)−3,8399432951,703
Net change in arrears1,6371,8191,3991,445
Memorandum items:
Current account (percent of GDP)−1.4−3.1−2.8−3.3
Excluding transfers−15.3−16.5−20.5−22.9
Exports of goods & services (percent of GDP)15.715.812.712.5
Imports of goods & services (percent of GDP)30.831.832.634.7
External public debt
In millions of U.S. dollars231295285266
Of which: arrears65858593
In percent of GDP84.281.180.571.5
Debt service (% of exports of goods & services)14.714.017.616.8
Exchange rate CF/US$ (period average)521438396415
Gross international reserves
In millions of U.S. dollar81979387
In months of imports of goods and services12.511.39.48.2
Nominal GDP (millions of Comorian francs)131,293141,437143,596153,112
Sources: Comorian authorities, and Fund staff estimates and projections.
Sources: Comorian authorities, and Fund staff estimates and projections.
Table 28.Comoros: Volume and Value of Principal Exports, f.o.b., 2000–05
200020012002200320042005
(Value in millions of Comorian francs; volume in metric tons; unit value in Comorian francs per kilogram)
Vanilla
Value4,1055,4006,6009,1302,8091,166
Volume159120112833160
Unit value25,81845,00060,000110,00090,00019,000
Clove buds
Value2,0122,4332,1121,563157146
Volume1,5561,1061,6162,605256156
Unit value1,2932,2003,00060061593
Ylang-ylang
Value8879991,0336442747
Volume404040431528
Unit value22,17524,71725,82515,44131,50026,000
Other products
Value259312312338110101
Total value7,2639,14410,05711,6953,0921,509
Memorandum item:
Export price index 1/1652615,3234,1139,477
Source: General Directorate of Customs.

Index 1990=100; calculated by the Fund staff.

Source: General Directorate of Customs.

Index 1990=100; calculated by the Fund staff.

Table 29.Comoros: Volume and Value of Principal Imports, c.i.f., 2000–05
200020012002200320042005
(Value in millions of Comorian francs; volume in metric tons; unit value in Comorian francs per kilogram)
Rice
Value3,8883,1383,4172,8662,3233,417
Volume30,00026,15029,29328,75316,69025,399
Unit value13012011699139368
Meat
Value2,3622,5372,1912,8073,0183,771
Volume3,2003,2003,1493,4434,3995,072
Unit value738793695815686744
Petroleum products
Value4,6415,4945,6105,9495,5884,196
Volume33,33845,10342,56344,66237,52520,487
Unit value139122131133148205
Cement
Value1,2601,4031,0811,5631,7352,686
Volume36,01540,00029,40736,54848,00655,867
Unit value353536433648
Iron and steel 1/
Value6017181,0921,1723,0461,373
Volume2,2342,4814,4594,5164,0873,678
Unit value269289244259745373
Other products
Value 2/13,10614,2048,1188,99020,50419,901
Total value 2/25,85728,40927,46430,31130,87335,344
Memorandum item:
Import price index 3/193.2188.0206.0209.0214.0
Source: General Directorate of Customs.

Including fabrications.

Balance of payments basis, including adjustments for coverage, valuation and recording errors.

Index 1990=100; calculated by the Fund staff.

Source: General Directorate of Customs.

Including fabrications.

Balance of payments basis, including adjustments for coverage, valuation and recording errors.

Index 1990=100; calculated by the Fund staff.

Table 30.Comoros: Geographical Distribution of Trade, 2000–05(In percent)
200020012002200320042005
Exports100100100100100100
European Union50.352.552.679.611.783.7
Of which
France38.647.638.775.910.773.3
Germany6.64.913.83.71.010.4
Netherlands0.00.00.00.00.00.0
Africa8.70.51.31.30.42.5
United States19.931.128.10.079.10.0
Rest of the world21.115.91819.10.113.9
Imports100100100100100100
European Union44.346.533.760.351.818.2
Of which
Belgium-Luxembourg3.81.12.11.62.02.4
France36.642.530.147.445.513.8
Germany1.50.90.30.31.00.1
Netherlands0.91.80.97.71.00.9
Other European countries1.00.60.816.12.30.8
of which
Romania0.00.00.00.00.00.0
Switzerland0.40.50.80.10.00.0
Africa26.220.225.015.914.823.7
of which
Kenya10.84.61.93.63.81.5
Madagascar1.82.22.11.01.20.9
Mauritius1.52.22.14.14.13.0
Réunion2.01.61.11.91.61.0
South Africa9.09.417.65.35.015.4
Asia28.022.820.10.18.64.6
of which
China1.10.21.30.70.0
Japan0.70.20.10.20.10.1
Kuwait0.00.00.00.00.0
Pakistan13.70.40.00.00.03.1
Saudi Arabia1.20.50.20.50.40.2
Singapore0.60.60.60.81.30.9
Thailand0.20.20.40.50.50.3
Vietnam0.00.00.00.00.00.0
United States0.30.00.00.10.00.0
Rest of the world0.29.916.423.624.852.7
Source: General Directorate of Customs.
Source: General Directorate of Customs.
Table 31.Comoros: External Debt Outstanding by Creditors, 2000–05(In millions of U.S. dollars)
200020012002200320042005
Multilateral loans120.8158.3135.4149.3164.8158.1
International Development Association70.679.084.597.9109.5109.3
International Fund for Agricultural Development5.86.06.27.07.08.1
African Development Fund1.739.336.536.538.233.9
African Development Bank34.613.80.00.00.00.0
Arab Bank for Economic Development in Africa0.70.00.00.00.00.0
International Monetary Fund1.50.80.50.20.00.0
Islamic Development Bank4.810.96.86.89.26.2
Organization of Petroleum Exporting Countries Special Fund0.26.40.00.00.00.0
Arab Fund for Economic and Social Development0.00.00.00.00.0
European Development Fund/European Investment Bank0.92.10.90.90.90.6
Bilateral loans20.140.024.524.530.615.5
Abu Dhabi0.00.00.00.00.0
China2.71.21.21.21.20.0
France2.43.12.12.18.24.5
Kuwait13.420.121.221.221.29.9
Saudi Arabia1.615.60.00.00.00.0
Mautius1.0
Total 1/140.9143.9159.9173.8195.4173.5
Arrears
Principal57.147.549.655.662.9
Interest26.626.622.224.026.029.8
Total arrears83.783.369.773.681.692.7
Stock of debt224.6227.2229.6247.4277.0266.2
Source: Ministry of Finance.

Disbursed, outstanding, and not yet due.

Source: Ministry of Finance.

Disbursed, outstanding, and not yet due.

Table 32.Comoros: External Debt Payment Arrears by Creditors, 2000–05(In millions of U.S. dollars)
200020012002200320042005
Multilateral creditors54.551.249.652.756.861.8
International Development Association0.00.00.00.00.00.0
International Monetary Fund0.00.00.00.00.00.0
African Development Bank Group15.519.820.423.425.528.7
Of which: African Development Fund3.913.85.87.79.110.6
Arab Bank for Economic Development in Africa24.411.125.625.625.626.2
International Fund for Agricultural Development0.00.00.00.00.00.1
OPEC Special Fund3.43.63.43.53.53.5
Islamic Development Bank11.22.90.20.22.23.3
Arab Fund for Economic and Social Development
Bilateral creditors29.232.120.821.024.630.8
France0.31.00.00.02.40.0
Belgium1.01.01.00.0
China3.61.80.00.00.01.2
Kuwait10.112.75.56.47.415.0
Saudi Arabia14.115.513.213.413.613.4
United Arab Emirates1.11.11.11.21.21.2
Total83.783.369.773.781.692.6
Of which:
Principal57.147.549.755.662.9
Interest26.622.224.026.029.8
Sources: For 1995–1999, Ministère des Finances; for 2000, Comorian authorities, creditor records, and IMF staff estimates.
Sources: For 1995–1999, Ministère des Finances; for 2000, Comorian authorities, creditor records, and IMF staff estimates.
Table 33.Comoros: External Debt-Service Payments by Creditors, 2000–05(In millions of U.S. dollars)
200020012002200320042005
Principal due5.964.354.334.645.495.78
Of which: paid2.22.12.78
Multilateral creditors3.893.623.603.934.785.04
International Development Association0.690.831.191.221.641.94
International Monetary Fund0.300.300.330.360.180.00
African Development Bank1.201.270.930.910.961.78
Of which: African Development Fund0.530.600.600.910.961.78
Arab Bank for Economic Development in Africa0.700.130.00000
International Fund for Agricultural Development0.050.050.050.110.110.25
Organization of Petroleum Exporting Countries Special Fund0.000.020.08000.00
Islamic Development Bank 1/0.420.420.420.420.931.07
Arab Fund for Economic and Social Development
Bilateral creditors2.070.730.730.710.710.74
France 2/0.000.000.000.000.000.00
Belgium 2/0.000.000.000.000.000.00
China0.000.000.000.000.000.00
Kuwait0.710.710.710.710.710.74
Saudi Arabia1.360.000.000.000.000.00
United Arab Emirates0.000.020.020.000.000.00
Interest due2.622.462.532.703.141.43
Of which: paid0.690.871.01
Multilateral creditors2.302.052.112.282.721.21
International Development Association0.590.520.580.580.760.94
International Monetary Fund0.000.000.00000.00
African Development Bank0.860.810.811.001.070.00
Of which: African Development Fund0.340.300.300.290.30.00
Arab Bank for Economic Development in Africa0.360.350.350.350.350.00
International Fund for Agricultural Development0.050.050.050.050.060.08
OPEC Special Fund0.100.020.020.010.010.00
Islamic Development Bank0.0000.170.19
Arab Fund for Economic and Social Development0.00
Bilateral creditors0.320.410.420.420.420.22
France0.000.000.000.000.000.00
China0.000.000.00
Kuwait0.000.000.010.010.010.00
Saudi Arabia0.200.210.210.210.210.22
United Arab Emirates0.100.180.180.180.180.00
0.020.020.020.020.020.00
Total debt service due8.586.816.867.348.637.21
Of which: paid3.80
Multilateral creditors6.195.675.716.217.56.25
International Development Association1.281.351.771.802.402.88
International Monetary Fund0.300.300.330.360.180.00
African Development Bank2.062.081.741.912.031.78
Of which: African Development Fund0.870.900.901.201.261.78
Arab Bank for Economic Development in Africa1.060.480.350.350.350.00
International Fund for Agricultural Development0.100.100.100.160.170.32
OPEC Special Fund0.100.040.100.010.010.00
Islamic Development Bank 1/0.420.420.421.101.27
Arab Fund for Economic and Social Development
Bilateral creditors2.391.141.151.131.130.95
France0.000.000.000.000.000.00
Belgium0.000.000.000.000.000.00
China0.000.000.010.010.010.00
Kuwait0.910.920.920.920.920.95
Saudi Arabia1.460.180.180.180.180.00
United Arab Emirates0.020.040.040.020.020.00
Source: Ministry of Finance.

Includes debt rescheduled in 1996.

Includes debt cancellations in 1994.

Source: Ministry of Finance.

Includes debt rescheduled in 1996.

Includes debt cancellations in 1994.

Table 34.Comoros: Summary of the Tax System (as of August 31, 2006)
TaxNature of TaxExemptions and DeductionsRates
1. Taxes on net income and profits
1.1 Profit tax (Impôt sur les Bénéfices Divers, IBD)Tax levied on companies and self- employed individuals whose turnover exceeds CF 20 millionNewly created enterprises eligible under the Investment Code, agricultural cooperatives and credit unions, government agencies and offices.35 percent for individuals and companies with turnover less than CF 500 million, 50 percent otherwise.
1.2 Single professional tax (Taxe Professionnelle Unique, TPU)Tax levied on companies and self- employed individuals with turnover below CF 20 millionProvisions of the investment code apply.x times the cost of a business licence (see item 3.1), depending on turnover, with

x equal toTurnover (T, in CF millions)
415 < T < 20
35 < T < 15
23 < T < 5
1T < 3
1.3 Advance on income taxes, (Acompte sur IBD et TPU)Surcharge on imports, deductible from IBD or TPU. See item 4.2.Same as for customs duties1 percent of customs value of imports for importers with taxpayer number;

50 percent for all others.
1.4 Taxes on capital income (Impôt sur les revenus de valeur et capitaux mobiliaire)Tax on distributed dividends and interest paid.Interest on loans contracted or granted by microcredit agencies, housing cooperatives, and agricultural credit unions.15 percent
1.5 Payroll Tax (Taxe sur les salires, formerly ‘Impôt general sur le revenu’)Paid by employees on wages and salaries.

Witheld at source for civil servants; settled within one month for others.
Diplomats.

Incomes under FC150,000 per year
Tax bracket (in CF)Tax rate (in percent)
150,001–500,0005
500,001–1,000,00010
1,000,001–1,500,00015
1,500,001–2,500,00020
2,500,001–3,500,00025
over 3,500,00030
2. Property taxes
2.1 Tax on rentals (Impôt sur la proprieté batie et louée)Annual tax on rental dwellingsNew properties used as dwellings for the first two years, and properties belonging to the government or to communes.Dwellings: 20 percent of rental value;

commercial and industrial premises: 30 percent.
2.2 Tax on registered property (droits d’enrigestrement)Transactions tax on real estate transmissions (sales, donations, inheritances)Government transactions (that include Muslim religion buildings).Judicial acts: fixed taxes of CF1,000 to CF20,000.
Sales: 2–9 percent of price.
Donations and inheritances: 5–60 percent of assessed value.
2.3. Property recording fees (Taxe de publicité fonciére)Tax on recording acts concerning property transactions.Government transactions (that include Muslim religion buildings).2 percent property rights and motgages;
1 percent baux.
2.4. Tax on real estate gains (Taxe sur la plus value immobiliere)Tax on capital gains for property salesGovernment transactions (that include Muslim religion buildings).The capital gain calculation and applicable tax are determined in the art. 65.2 of the Tax Code.
3. Taxes on goods and services
3.1 Business license (Patente d’exploitation)Tax on any company or self- employed individual involved in trade, industry, or a profession.Craftsmen, farmers, agricultural cooperatives, agricultural credit unions.3, 5, or 10 percent of the annual rental value of the business premises depending on location; plus
fixed amount of between CF 5,000 and CF 750,000, depending on the type of business
3.2 Consumption tax (Taxe de consommation)Consumption tax on domestic transactions: Turnover tax levied on domestic services (hotels, restaurants, banks, electricity, water, telecommunica-tions, import trade,…). Consumption tax on imports:: Levied at customs, based on c.i.f. value plus single import tax, credited against domestic consumption tax if applicable.Medical services; Enterprises with turnover of CF 20 million or less; Exports, petroleum products, and publishing.Five rates: base rate, 10 percent; basic necessities, 0 percent; water, private schools, and inter-island airfares, 3 percent; electricity, telephone, hotel and restaurants, banking services, and international airfares, 5 percent, casino revenues, 25 percent.
3.3 Visa fee (Droits de visa)Entry and residency fees to be paid by foreigners coming into Comoros.DiplomatsVisas CF500–2000 depending on duration and number of entries Residency card CF 60,000
3.4 Motor vehicle tax (Vignette)Annual tax on vehicles in use.Vehicles owned by the central government or local governments, diplomats and cooperant missions. Cars in Comoros for more than 20 years.CF4,000-22,500 per cylinder, depending on the age and of the vehicle and engine capacity.
3.5 Special tax on diesel engine vehicles (Taxe sur les vehicules à moteur diesel)Annual tax on vehicles in use.Vehicles owned by the central government or local governments, diplomats and cooperant missions; and vehicles used in agricultural activities.CF 25,000 per ton of load capacity.
3.6 Parking fee (Droit de stationement)Annual tax on vehicles in use.Same as special tax on diesel engine vehicles.CF 1,000 per vehicle.
3.7. Stamp duties (Droit de timbre)Tax charge on official acts.Government, diplomats cooperant missions.CF500-CF25,000 depending on transaction
3.8 Tax on insurance policies (Taxe sur les contrats d’assurances)Tax charge on insurance policies.Government, diplomats cooperant missions.3 percent of the policy value for life, maritime, and rental insurance.

15 percent for fire insurance.

4 percent for all other modalities.
3.9. Tax on TV equipment (Impôt sur les récepteurs de télévisions, les magnétoscopes et les vidéoscopes)Annual tax charged on use of TV, magnetoscope and videoscope sets.None.FC20,000 per set
3.10. Alcohol sale license (License de vente de boissons alcoholiques)One-time tax for newly licensed distributors and retailers of alcoholic beverages.None.CF 750,000 for distributors

CF 500,000 for retailers
4. Taxes on international trade
4.1 Single import tax (TUI)Tax on imported goodsGoods imported by the central government under grants, and goods imported by diplomatic missions.Rates of 0 percent, 15 percent, 21 percent, and 30 percent of import value, c.i.f.
4.2 Accompte sur IBD et TPU (AIT)Levied on all commercial imports.Deductible from payment of IBD and TPU, see items 1.1 and 1.21 percent of c.i.f. value
4.3 Administrative levy (redevance administrative)Tax on imported goodsGoods imported by the central government under grants, and imports by diplomatic missions. Cement, fertilizers, rice, petroleum products, flour.1 percent of customs receipts on taxable imports; 3 percent of c.i.f. value of exempt imports.
4.4 Single specific tax on imports (TUS)Selected imports, mainly meat and buses.Goods imported by the central government under grants, and goods imported by diplomatic missions.CF 10-150 per kilogram, CF 8-200 per liter, up to CF 1 million for buses.
4.5 Single tax on riceCF 150/kg for high-grade rice;

CF 45/kg for ordinary rice;
4.6 Single tax on petroleum (TPP)Reduced rate applies to diplomatic missions, ships, and aircrafts (zero rate for aviation fuel Jet A1)Gasoline (normal rate) CF 230/l

Gasoline (reduced rate) CF 211/l

Diesel oil (normal rate) CF 115/l

Diesel oil (reduced rate) CF 95/l

Kerosene (normal rate) CF 10/l
4.7 Excises, or Special fiscal duty (TSVF)Levied on alcoholic beverages, tobacco products, and cement.Spirits: 300 percent; wine and beer: 200 percent; tobacco products, 300 percent. Cement: 15 percent of c.i.f. value.
4.8 Export dutyCloves, vanilla, and Ylang-ylangSet annually, dependent on market conditions
4.9 Forfait regime (regime forfaitaire)Specific tax rate levied on all containers (20 foot and 40 foot). Not applied to one imported good if more than 60 percent of content.Tabac, Alcool, Rice, Soda beverages Printed textiles (Kiromani, Lesso, Pagne, Mamuwa, and Msoutrou)20 ft container: FC 2.1 million

40 ft container: FC 3.5 million
5.0 Additional centimesLevied on behalf of the Chamber of Commerce (UCCIA)1 percent of export value, f.o.b., less export duties.
1

The chapter was prepared by Paulo Lopes.

2

On the experience of fiscal decentralization in African countries, see Brosio (2000) and Smoke (2000).

3

A Selected Issues paper prepared by Fund staff in 2004 (Country Report No. 04/233) reported on progress in the design of the new federal structures and the related implementation of fiscal decentralization in Comoros.

4

Political economy models formalizing these trade-offs between fiscal federal risk-sharing and moral hazard at lower levels of government is provided in Person and Tabellini (1996) and Bolton and Roland (1997). These studies also offer useful advice on how to design federal systems to resolve these trade-offs.

5

Data from former Minister of Finance Oubeidi Mze Chei in June 2006 as he explained the difficulties he faced in containing expenditures and paying salaries (source: Agence Comorienne de Presse, June 29, 2006).

6

In 1996, the average wage bill in 32 countries in sub-Saharan Africa was 6 percent (Lienert and Modi, 1997).

7

In practice, Comoros has only three major revenue sources: the port of Moroni, which has been effectively controlled by the Union government rather than Ngazidja authorities; the national telecommunications company, also controlled by the Union; and the port of Anjouan, which is controlled by the government of Anjouan.

8

In a number of countries worldwide, intergovernmental schemes rely on formulas that allocate equalization grants across regions based on regional tax bases or incomes, given asymmetries in average per capita income between regions. As a result, any politically feasible decentralization would typically be accompanied by a system of regional redistribution; otherwise the poorest regions would be much worse off. In Comoros independent tax collection agreements for each island were largely accepted by the other islands because of the compensatory mechanism of a large Union share of the redistribution. This mechanism is therefore similar to a social insurance scheme because it shares macroeconomic risks among heterogeneous governments with different per capita income and revenue capacity.

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