Sharer, Robert, and others, 1998, Trade Liberalization in IMF-Supported Programs, World Economic and Financial Surveys (Washington; International Monetary Fund).
Pritchet, Lant and Sethí, Greta, 1994, Tariff Rates, Tariff Revenue, and Tariff Reform: Some New Facts, World Bank Economic Review, Vol. 8 (January) pp.1–16.
Prepared by Carlos Leite.
São Tomé and Príncipe has never relied extensively on quantitative restrictions and there is none in existence. São Tomé and Príncipe does retain some monopoly practices, namely in water and power utility, the importing and distribution of oil products, telecommunications, and air transportation, although the companies involved in these sectors have been partially privatized, with the exception of the water and power utility.
The proposal, which empowers customs to impose penalties and sanctions without first obtaining a court order (although retaining the right of appeal on the part of the customer) and updates the size and nature of penalties (some of which were originally set in absolute terms in the 1940s) was originally presented to parliament with the 1999 budget; however, it was rejected on a technicality. A similar proposal will again be presented to parliament as part of the bill presenting the reform of customs duty rates.
With technical assistance from France and the European Union, São Tomé and Príncipe also intends, in 2000, to improve its training program, draft and implement a plan of action to assess recent measures and improve management practices, strengthen the information and planning systems, and modernize customs regulations.
At present, CEMAC legislation allows the collection of a turnover tax (TCA) ranging from 0 to 18 percent, an excise tax (droit d’accise), and a temporary surtax (surtaxe temporaire) with a maximum of 30 percent.
On the basis of the articles contained in the harmonized classification system published in 1996 by the World Customs Organization.
Current recovery rates are estimated to vary from a low of 2-3 percent for Equatorial Guinea to a high of 11—13 percent for Gabon.
Even excluding the consumption tax, which ranges from 0 to 130 percent.
Excluding petroleum products, basic foodstuffs, and investment goods, both in the detailed transactions data and in the total imports and source of fiscal revenue.
Some hotels, for example, have successfully negotiated a 50 percent reduction in the duties and taxes payable on imported wines, whereas their competitors continue to be subject to the full rates.
The authorities are preparing a census of all exemptions, and they intend to more closely monitor quantity limits and expiry dates.
Assuming that efficiency rates are rate specific instead of good specific would allow us to use the expected efficiency rate to estimate the possible effect on tax collections.
Application of the sales tax to domestic services would help ensure consistency with the World Trade Organization and would also represent a first step toward a full credit-based VAT system, the immediate implementation of which is difficult, given the limited administrative capacity and training currently available.
In addition to generally strengthening management and improving the training available to the staff, the authorities are working closely with the chamber of commerce to increase the rate of compliance with customs law. In particular, customs management has elaborated a plan to closely monitor invoicing practices through periodic updating of Portugal’s unit export prices, a practice that addresses the key issue of underinvoicing.
São Tomé and Príncipe is one of the few countries worldwide yet to accede to these two international organizations.