Chad: Selected Issues and Statistical Appendix

International Monetary Fund

doi:10.5089/9781451836462.002.A006

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Chad: Selected Issues and Statistical Appendix

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International Monetary Fund

International Monetary Fund
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Publication Date:: 31 Jan 2007

eISBN:: 9781451836462

Language:: English

Keywords:: ISCR; CR; Chad; wage; Microfinance institution; oil revenue; MFI deposit; MFI operation; grassroots MFI activity; MFI license; MFI expansion; Microfinance; Loans; Commercial banks; Credit; MFI management

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This Selected Issues paper aims at discussing the impact of the oil windfall on Chad, with a focus on growth, poverty, competitiveness, and fiscal policy challenges posed by the oil revenue outlook. The paper discusses the reforms needed to remove structural factors that constraints the non-oil sector growth, in particular on civil and military services and the microfinance sector. The paper argues that Chad’s current growth potential is seriously limited by low levels of both human and physical capitals and by weak institutions and governance.

Abstract

VI. Chad’s Microfinance Sector: An Overview⁶⁹

A. Introduction

1. Microfinance institutions (MFIs) have been successful in improving the population’s access to financial services. Between 2000 and 2004, the microfinance sector grew rapidly: the number of MFIs doubled, the amount of credit extended by such institutions tripled, and their deposits increased sevenfold. This paper examines the status and development challenges of Chad’s microfinance sector.

2. The paper’s main findings are as follows:

A. Microfinance institutions (MFIs) have helped mobilize savings in Chad’s informal sector, especially in rural areas. Compared with commercial banks, MFIs offer financial services to twice as many individuals as banks and are present in 20 times as many locations.

B. However, the microfinance sector in Chad still has limited macroeconomic significance. MFI deposits were equivalent to just 4 percent of commercial bank deposits and MFI loans to just 3 percent of commercial bank loans in 2004.

C. Important development barriers should be addressed to ensure that MFIs are a key ingredient of economic growth and poverty reduction. In particular, the sector’s human resource and information technology systems need to be strengthened to promote more balanced—and sustainable—growth.

3. The paper is organized as follows. The next section describes the structure and regulatory environment of the microfinance sector in Chad. Section C examines how MFIs have helped increase access to credit and mobilize savings. Section D summarizes the main weaknesses and challenges of the country’s MFI sector. Section E concludes and offers recommendations.

B. Background

4. Only a small segment of the Chadian population can access formal financial services. Chad has a very shallow financial market relative to its size (1,284, 000 km²), with only five towns serviced by commercial banks. Only 0.7 percent of the population (about 60,000 people) have accounts with commercial banks. Deposits in the banking system account for only 4.5 percent of GDP (though the ratio of deposits to non-oil GDP, at 7 percent, is close to the average in the Central African Economic and Monetary Community (CEMAC)). The small portion of deposits in the money supply is further evidence of the limited role of Chad’s formal banking system in Chad. In contrast to CEMAC countries, where bank deposits account for about 75 percent of the average money supply, only 42 percent of Chad’s money supply is intermediated through its banking system.

5. MFIs began developing in Chad in the 1980s, a period of growing interest in microfinance as a tool for mobilizing local savings, financing business activities, and supporting rural production through community-based financial intermediation. Chadian MFIs are grassroots savings and loan cooperatives (COOPECs), whose role is to mobilize local savings to allow communities to finance their own development. Of the MFIs, more than two-thirds operate within a network structure that provides them with technical and financial support. According to the Central African Banking Commission (COBAC), by end-2004 Chad had 214 MFIs in three categories: (i) 187 MFIs organized in 6 networks;⁷⁰ (ii) 23 independent MFIs; and (iii) 4 MFIs linked to foreign-financed development projects. Chad’s MFIs operate in the banking and financial market segment, which is underserved by conventional banks and traditional financial institutions. Nonetheless, Chad’s MFI and bank activities are complementary, in that highly local MFIs mobilize domestic savings, which then get partly deposited in commercial banks.

Table 1.

Chad’s MFI Sector, at June 30, 2004

Source: Mission of the Commission Bancaire de l’Afrique Centrale for the Evaluation of the Microfinance Credit in Chad (November 2004-February 2005).

Table 1.

Chad’s MFI Sector, at June 30, 2004

	Number of MFIs		Number of Members		Loans (Millions of CFAF)		Deposits (Millions of CFAF)
	2000	2004	2000	2004	2000	2004	2000	2004
Networked MFIs	69	187	31,300	97,318	319	2,944	614	4,241
Independent MFIs and projects	7	27	579	1,060	1,064	725	-	178
Total	76	214	31,879	98,378	1,383	3,669	614	4,419

Source: Mission of the Commission Bancaire de l’Afrique Centrale for the Evaluation of the Microfinance Credit in Chad (November 2004-February 2005).

Table 1.

Chad’s MFI Sector, at June 30, 2004

	Number of MFIs		Number of Members		Loans (Millions of CFAF)		Deposits (Millions of CFAF)
	2000	2004	2000	2004	2000	2004	2000	2004
Networked MFIs	69	187	31,300	97,318	319	2,944	614	4,241
Independent MFIs and projects	7	27	579	1,060	1,064	725	-	178
Total	76	214	31,879	98,378	1,383	3,669	614	4,419

Source: Mission of the Commission Bancaire de l’Afrique Centrale for the Evaluation of the Microfinance Credit in Chad (November 2004-February 2005).

Table 2.

MFIs Operating Within a Network Structure, 2004

Source: Mission of the Commission Bancaire de l’Afrique Centrale for the Evaluation of the Microfinance Credit in Chad (November 2004-February 2005).

Table 2.

MFIs Operating Within a Network Structure, 2004

	Number of MFIs	Number of Members	Loans (millions of CFAF)	Deposits (millions of CFAF)
URCOOPEC N’Djamena	10	32,200	1,939	2,273
UCEEC Pala	40	33,341	515	1,159
ASDEC Moundou	49	9,135	149	189
PARCEC-MC Sarh	25	13,335	306	528
CDCR/ONDR Mondou	55	8,800	0	58
ASSOCEC N’Djamena	8	507	35	34
Total	187	97,318	2,944	4,241

Source: Mission of the Commission Bancaire de l’Afrique Centrale for the Evaluation of the Microfinance Credit in Chad (November 2004-February 2005).

Table 2.

MFIs Operating Within a Network Structure, 2004

	Number of MFIs	Number of Members	Loans (millions of CFAF)	Deposits (millions of CFAF)
URCOOPEC N’Djamena	10	32,200	1,939	2,273
UCEEC Pala	40	33,341	515	1,159
ASDEC Moundou	49	9,135	149	189
PARCEC-MC Sarh	25	13,335	306	528
CDCR/ONDR Mondou	55	8,800	0	58
ASSOCEC N’Djamena	8	507	35	34
Total	187	97,318	2,944	4,241

Source: Mission of the Commission Bancaire de l’Afrique Centrale for the Evaluation of the Microfinance Credit in Chad (November 2004-February 2005).

6. Chad has the second-highest number of operating MFIs among CEMAC countries, according to the COBAC. The microfinance sector is more developed only in Cameroon, where two-thirds of all CEMAC MFIs are located. The sector is still very small in the Central African Republic, Gabon, and Equatorial Guinea.

Table 3.

CEMAC: Number of MFIs per Country, 2004

Source: Mission of the Commission Bancaire de l’Afrique Centrale for the Evaluation of the Microfinance Credit in Chad (November 2004-February 2005).

^{^1/}As of 2003.

Table 3.

CEMAC: Number of MFIs per Country, 2004

Cameroon	CAR	Congo	Gabon	Equatorial Guinea ^1/	Chad	Total
652	36	69	13	2	214	986

Source: Mission of the Commission Bancaire de l’Afrique Centrale for the Evaluation of the Microfinance Credit in Chad (November 2004-February 2005).

^{^1/}As of 2003.

Table 3.

CEMAC: Number of MFIs per Country, 2004

Cameroon	CAR	Congo	Gabon	Equatorial Guinea ^1/	Chad	Total
652	36	69	13	2	214	986

Source: Mission of the Commission Bancaire de l’Afrique Centrale for the Evaluation of the Microfinance Credit in Chad (November 2004-February 2005).

^{^1/}As of 2003.

7. MFIs, which at first operated informally, are now being incorporated into the CEMAC regulatory framework on microfinance adopted in 2002.⁷¹ This regulatory framework defines the scope of permissible activities for credit cooperatives, essentially ensuring that they limit their size and activities to agreed-upon parameters and operate within a network structure. The main elements of the regulations are as follows: (i) MFIs need to hold a valid license to operate; (ii) MFIs can operate only in the country in which they are registered and must join that country’s professional MFI association; and, (iii) COBAC will be responsible for regulating and sanctioning MFIs. In addition, prudential regulations, which are stricter for MFIs than for commercial banks, vary by type of MFI and fall into three categories: category-one MFIs collect deposits and lend exclusively to their members; category-two MFIs collect deposits and lend to nonmembers; and category-three MFIs lend only to third parties without accepting deposits. In 2004, most MFIs were classified as category one. In compliance with the CEMAC regulations, Chad has set up a professional association for MFIs and a department for microfinance issues within the Ministry of Finance. The MFI licenses issued by this department are in the process of being verified and validated by the COBAC.

8. The government and donors recognize the importance of MFIs in financing the Chadian economy. The National Poverty Reduction Strategy (NPRS) views microfinance as a poverty reduction tool, prompting some banks and donors to back selected MFIs (see Ministry of Plan, Cooperation, and Development, 2002 and 2003).

C. Saving Mobilization by MFIs

9. MFIs have successfully mobilized deposits and promoted domestic saving, in part because banking system outreach remains limited. Because banks operate only in a few urban areas, accessing bank accounts is too costly for most people, especially for those living in rural areas. MFIs have been successful in promoting a culture of saving in villages and small towns. In 2004, MFIs offered financial services to twice as many individuals as banks and were present in 20 times as many locations (Table 4). In addition, MFIs have fostered entrepreneurship by financing the establishment of businesses and the creation of cooperatives and partnerships. Also, the flexibility and accessibility of MFIs make it possible to combat usury in the informal sector.

Table 4.

Banks and MFIs in Chad, at June 30, 2004

Source: Mission of the Commission Bancaire de l’Afrique Centrale for the Evaluation of the Microfinance Credit in Chad (November 2004-February 2005).

Table 4.

Banks and MFIs in Chad, at June 30, 2004

	Offices or Branches (total number)	Deposits (CFAF millions)	Loans (CFAF millions)	Members or Customers	Towns or Localities
Banks	20	102,127	112,002	59,553	5
MFIs	214	4,419	3,669	98,378	94

Source: Mission of the Commission Bancaire de l’Afrique Centrale for the Evaluation of the Microfinance Credit in Chad (November 2004-February 2005).

Table 4.

Banks and MFIs in Chad, at June 30, 2004

	Offices or Branches (total number)	Deposits (CFAF millions)	Loans (CFAF millions)	Members or Customers	Towns or Localities
Banks	20	102,127	112,002	59,553	5
MFIs	214	4,419	3,669	98,378	94

Source: Mission of the Commission Bancaire de l’Afrique Centrale for the Evaluation of the Microfinance Credit in Chad (November 2004-February 2005).

10. MFIs have been innovative in establishing credit tailored to borrowers’ specific circumstances. Lending rates range between 14 and 60 percent per year, with the majority of loans carrying a rate of 24 percent rate (significantly above the 12-18 percent per year offered by commercial banks). Required collateral includes cattle, land, equipment, and personal endorsement. Loans offered by MFIs comprise:

Commercial loans, targeted to members in the business sector, particularly people establishing new enterprises. The terms of these loans vary from 1 to 12 months.
Construction/housing loans, which are becoming increasingly popular in towns. Low-income individuals who permanently deposit their wages in MFIs can obtain loans for housing construction or home improvement. The terms of these loans range from 6 to 24 months.
Agricultural loans. Despite the importance of agriculture, which employs approximately 4.5 million workers, private investment in the sector is still limited, owing to structural underfunding (which has kept the sector from advancing technologically). Bank credit for farming accounts for only 1 percent of the total volume of credit extended annually. By contrast, most MFIs are located in villages, near farmers.
Educational and social loans, offered at the beginning of each school year so members can buy school supplies and pay school fees. The terms of these loans range from 2 to 6 months.
Social loans, which vary in type, but are mostly emergency loans and are usually granted to help members deal with unforeseen family problems, such as illness or death. Extenuating circumstances are taken into account in the disbursement of these loans.

11. The bulk of the loans are geared toward income-generating economic activities, including business, investment, and crop credits. Women account for 87 percent of total borrowing.

Table 5.

Share of Loans by Activity and Gender of Beneficiary in N’Djamena (Percent)

Source: Regional Union of Saving and Loan Cooperatives of N’Djamena (URCOOPEC), 2004, Fact Sheet.

Table 5.

Share of Loans by Activity and Gender of Beneficiary in N’Djamena (Percent)

PURPOSE OF LOAN	GENDER
PURPOSE OF LOAN	MALE	FEMALE	TOTAL
Business	32.8	63.1	41.8
Investment	17.9	9.3	15.3
Housing/Construction	28.0	14.3	23.9
Crop year	2.7	0.7	2.1
Social	5.4	3.1	4.7
Education	13.4	9.4	12.2
TOTAL	100.0	100.0	100.0

Source: Regional Union of Saving and Loan Cooperatives of N’Djamena (URCOOPEC), 2004, Fact Sheet.

Table 5.

Share of Loans by Activity and Gender of Beneficiary in N’Djamena (Percent)

PURPOSE OF LOAN	GENDER
PURPOSE OF LOAN	MALE	FEMALE	TOTAL
Business	32.8	63.1	41.8
Investment	17.9	9.3	15.3
Housing/Construction	28.0	14.3	23.9
Crop year	2.7	0.7	2.1
Social	5.4	3.1	4.7
Education	13.4	9.4	12.2
TOTAL	100.0	100.0	100.0

Source: Regional Union of Saving and Loan Cooperatives of N’Djamena (URCOOPEC), 2004, Fact Sheet.

D. Weaknesses and Challenges of Chad’s Microfinance Sector

12. The microfinance sector’s expansion has been geographically uneven, and the size of its operations remains only a fraction of the commercial bank sector’s. MFIs are unevenly distributed throughout the country, with most located in the central and southern regions, where the bulk of the economic activity takes place. While there are many MFIs, the scale of their deposits (4 percent of commercial banks’) and credits (3 percent of commercial banks’) remains small.

13. In general, the management and financial performance of Chad’s MFIs are weak. Most MFIs have poor management procedures, high administrative costs, and poor internal controls mechanisms. In addition, the quality of staffing is still substandard, given the sector’s grassroots nature and lack of trained managers. Indeed, MFIs are often managed by unqualified personnel with limited strategic vision for developing the enterprise. Some MFIs face serious cash shortages and are not financially viable. For example, one MFI in N’Djamena faced serious financial problems, after it extended large amounts of credit to civil servants who faced salary arrears. Several MFIs supported by foreign partners rely on subsidies.

14. In addition, rapid MFI growth has made it significantly more difficult to manage and monitor their activities. MFI staff credentials and MFI information management system have not kept pace with the industry’s growth. Some managers, accountants, cashiers, and loan officers are overwhelmed by the functional complexity of transactions, especially since these transactions are still handled manually. The scant use of information technology tools makes MFI operations less secure, slows service delivery, and creates important bottlenecks. Delays in the production of a borrower database on borrowers have undermined the networks’ ability to monitor grassroots MFI activities.

15. A number of institutional challenges continue to hamper the development of Chad’s microfinance sector, including (i) the absence of a national microfinance policy and strategy; (ii) poor dissemination of microfinance legislation; (iii) a lack of coordination among ministries responsible for regulating and promoting MFIs (agriculture, finance, and planning and development); (iv) a lengthy process for closing a nonviable MFI; (v) widespread insecurity, which threatens MFI deposits generally; and (vi) a lack of human and technological resources within the microfinance department of the ministry of finance, which monitors MFI operations (see Ministry of Finance, 2003).

E. Conclusions and Recommendations

16. The emergence of MFIs in Chad has helped improve the population’s access to financial services. However, MFI expansion has been geographically uneven, the operations of such institutions remain small, and MFI management and financial performance are weak. In addition, rapid MFI growth has created pressure for improved human resource and information technology systems.

17. Promoting the balanced and sound development of the microfinance sector is essential to implementing Chad’s poverty reduction strategy and achieving sustained economic growth. Related measures include (i) training MFI staff and management in bookkeeping, reporting standards, internal controls, and credit decision making, (ii) improving MFI technology systems, (iii) furthering efforts to regulate the microfinance sector, and (iv) strengthening the general judicial environment.

References

Commission Bancaire de l’Afrique Centrale (COBAC), 2005, Inventory and assessment of Microfinance Institutions in Chad, Report elaborated by the COBAC evaluation mission from November 2004-February 2005.
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Ministry of Finance, 2003, Brief on the status of microfinance in Chad, November.
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Mourji, F., 2002, Le financement semi-formel du secteur informel au Maroc: le micro-crédit, une alternative à l’impasse ?, Université Hassan II Ain Chock, Casablanca, Maroc.
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Regional Union of Saving and Loan Cooperatives of N’djamena, 2004, Fact sheet, Ndjamena, November.
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Ministry of Plan, Cooperation, and Development, 2002, National policy paper on microfinance in the Republic of Chad, N’Djamena, November.
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Ministry of Plan, Cooperation, and Development, 2003, National Poverty Reduction Strategy Paper, Ndjamena, June.
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Chad: Summary of the Tax System - To be updated to end-2005

(Amounts expressed in CFA francs)

Tax			Nature of Tax	Exemptions and Deductions	Rates
1. Tax on net income and profits
	1.1	Tax on net income and profits of companies
	1.1.1	Corporate tax (IS) (General Tax Code, Art. 115 to 135)	Levied annually on the profits of corporations engaged in industrial, commercial, agricultural, or noncommercial business. Capital gains from the transfer of assets are considered part of gross profits except in the case of transfers when going out of business, for which only a fraction is included, in proportion to the length of the operation (50 percent if the transfer occurs after more than five years). Possibility of capital gains exemption if reinvested.	Agricultural production and consumption cooperatives; agricultural associations; teaching and professional training associations and cooperatives. Exemption during the first five years of operation for new enterprises eligible under one of the Investment Code schemes.	- 40 percent (law for 2003 budget): general regime; and - 25 percent for income earned by nongovernmental organizations, associations and public nonprofit institutions (CGI, Art. 130).
			Paid in one-third advance installments.
			Profits are declared within three months of year-end, and the tax must be paid on a voluntary basis in the month after filing of the return.
	1.1.2	Minimum tax (General Tax Code, Art. 183 to 186)	Assessed on the preceding month’s turnover. The tax must be paid voluntarily. It is included in the calculation of annual taxes when these are filed and paid. Any overpayments are nonrefundable and ultimately accrue to the public Treasury.	Same as 1.1.1.	- Single rate of 1.5 percent on turnover, all taxes included.
	1.2	Personal income tax (IRPP)	Assessed on net annual income received or earned, whatever its source. Principle of taxation by household. Gross income is calculated by adding together income from the different categories. Net income is obtained after deduction of deficits from previous years and interest on borrowing for real estate investment. A tax return must be filed by March 1 of each year. Income is assessed according to rules established for each category. There are seven categories of income: (1) wages and salaries; (2) property income; (3) investment income; (4) industrial and commercial profits; (5) income from noncommercial activities; (6) remuneration of managers with majority shareholding; and (7) income from abroad.	The fiscal system is taken into account by application of the system of splitting family income (1 share for the husband, 1 share for the wife, and 1/2 share per dependent child and up to a maximum of 5 shares per family). The following reductions also apply: - the contribution is reduced by 20 percent for income per share not exceeding CFAF 300,000; - the 20 percent reduction of the contribution is reduced by 1 point per bracket of CFAF 1,000 for income per share between CFAF 300,000 and CFAF 310,000; - the contribution is reduced by 10 percent for income per share between CFAF 310,000 and CFAF 600,000; - the 10 percent reduction applicable to the contribution is decreased by 1 point per CFAF 1,000 for income per share between CFAF 600,000 and CFAF 610,000.	Progressive scale from 20 percent to 65 percent. Rate per share: - CFAF 1-300,000: 20 percent - CFAF 300,001-800,000: 25 percent - CFAF 800,001-1,000,000: 30 percent - CFAF 1,000,001-1,500,000: 40 percent - CFAF 1,500,001-2,000,000: 45 percent - CFAF 2,000,001-3,000,000: 50 percent - CFAF 3,000,001-6,000,000: 55 percent - CFAF 6,000,000 and above: 65 percent.
	1.2.1 Salaries, pensions, and life annuities (General Tax Code, Art. 37 to 41)		The tax base consists of total gross remuneration and benefits in cash and in kind, assessed at 15 percent for free housing and a variable percentage (between 1 and 8 percent) for other benefits.	Deductions: withholdings by the employer for the creation of merged pension funds and social security withholdings. The amount thus obtained is subject to a standard abatement of 40 percent.	The IRPP scale is applied after deduction of a tax credit of 4 percent of net taxable income in the form of wages and salaries. It is withheld at source by the employer and forwarded to the Treasury in the first 20 days of the following month. The amount withheld is an installment of the tax ultimately payable.
	1.2.2 Property income (General Tax Code, Art. 12 and 13)		The tax base consists of gross income from developed and undeveloped property that is not included as part of the profits of an industrial, commercial, artisanal, or agricultural enterprise, or a noncommercial profession.	Net income is obtained by reducing gross income by 30 percent for management, insurance, repair, maintenance, and amortization costs. Owner-occupied premises are exempt.	Withheld at source when the lessee is a partnership or an incorporated company, whether or not it is subject to corporate tax, in the amount of: - 15 percent of the rent if the beneficiary resides in Chad; - 20 percent if the beneficiary does not reside in Chad. The amount withheld at source is credited against personal income tax and is paid monthly.
	1.2.3 Income from movable capital (General Tax Code, Art. 51 to 68)		The tax base consists of income from securities, shares, shares (equity securities), directors’ fees and remuneration, income from claims, security and other deposits, investments. Gross income is obtained by adding all the amounts collected [and] related tax credits.		Withheld at source at the single rate of 20 percent. The amount withheld is deductible from the annual amount of the IRPP.
1.2.4	Industrial and commercial income
1.2.4.1	Industrial and commercial profits (BIC) (General Tax Code, Art. 14 to 35)		Gross income consists of net profits received or payable from industrial, commercial, artisanal, and agricultural activities exercised by individuals. Capital gains from the transfer of assets are normally considered to be profits. However, in the case of a complete transfer of assets, 50 percent of the capital gains is deducted if the transfer takes place within five years of creation and 25 percent if the transfer takes place after five years. Profits are subject to the presumptive tax, for turnovers of less than CFAF 30 million (small businesses or small farmers) or CFAF 20 million (other activities). The tax on real income is applied to turnovers over the above-mentioned ceilings.	Taxable profits are subject to a lumpsum abatement of 20 percent for activities other than: - purchase/resale; - insurance, banking, credit, freight forwarding; - brokers, business agents; - leasing of equipment or funds.	Withheld at source at the single rate of 1.5 percent. See 1.2 above.
	1.2.4.2	Withholding at source on wholesale purchases and sales	Levied on purchases from and sales to wholesalers. Deducted from the IRPP payable on total income; no refunds made. Extended to importers and government suppliers. Replaces the turnover tax on services.	Suspension for three months (renewable) of the 4 percent prepayment for corporations current with their tax obligations.	4 percent on the amount of invoices.
	1.2.4.2	Withholding at source on wholesale purchases and sales		The 4 percent prepayment is credited toward the annual payment of the tax.
	1.2.4.3	Minimum tax	IRPP installment (itemized system) payable but not refundable. Assessed on turnover in the current year. Monthly payment is based on the previous month’s turnover.	Lumpsum taxpayers are not subject to the minimum tax. However, their business license is increased by an amount that serves as part payment of the IRPP/BIC.	Withheld at source at the single rate of 1.5 percent.
	1.2.5	Noncommercial profits (BNC) (General Tax Code, Art. 42 to 50)	Gross income consists of net profits from a professional activity, position, or office, or a profitable operation not forming part of another income category. Income is calculated on the basis of either: - actual profits; or - estimated profits.	Only 80 percent of the profits identified are taxable.	Withheld at source at the rate of 20 percent, levied as a part payment on invoices and fees and commissions. Taxpayers without a permanent professional office in Chad are subject to withholding at source equal to 12.5 percent of the amount of the contract, in discharge of the IRPP.
	1.2.6	Remuneration of directors with majority shareholding and directors of limited partnerships (General Tax Code, Art. 36)	The tax base consists of the wages, lumpsum reimbursements of expenses, and any other remuneration deductible from company profits.	The deduction of professional expenses may not exceed 15 percent of the amounts collected.
	1.2.7	Income received outside Chad	Taxed in its entirety in Chad unless otherwise indicated in international conventions. In that case, the so-called effective rate rule applies.		Single rate of 25 percent.
	1.2.8	Tax on capital gains from land transfers	Levied on capital gains realized by individuals or corporations on transfers of developed or undeveloped land acquired less than seven years earlier. This tax has been abandoned in practice.
	1.3	Miscellaneous
	1.3.1	Contribution to the Rural Action Fund (Fonds d’Intervention Rurale (FIR)	Payable by all individuals subject to head tax or the IRPP.		- Individuals subject to the head tax: CFAF 100. - Wage earners: CFAF 40 a month.
1.4 General Lumpsum Tax (Impôt Général Libératoire—IGL)			Replaces the lumpsum turnover tax (TCA), BIC, BNC, and tax on agricultural profits (BA). Payable by sole proprietorships whose turnover is less than CFAF 30 million for purchases/resale and less than CFAF 20 million for suppliers and noncommercial profits.	Corporations and sole proprietorships subject to the tax on real income using the simplified tax return, and some professional categories.	The rate varies depending on the activity and the location.
2. Social security contributions
	2.1	Family benefits allowances	Employer is responsible for contribution.	Monthly wages ceiling: CFAF 130,000.	Service delivery: 16 percent General scheme: 6 percent, including 0.1 percent to the manpower office; Domestic employees: CFAF 1,200 a month per employee.
	2.2	Industrial accidents	As above.	As above.	General scheme: 2.5 percent (increased to 4 percent in cases of violation of safety regulations).
	2.3	Retirement	Contribution shared by employer and employee.	As above.	Employer: 4 percent. Employee: 2 percent. Civil service wages and salaries: 5 percent.
3. Payroll taxes
	3.1	Lumpsum tax payable by employers and annuity grantors (General Tax Code, Art. 174 to 177)	Assessed on total gross remuneration, consideration in kind, allowances, and lumpsum reimbursements. Paid by private sector employers on a monthly basis.		7.5 percent of gross taxable total.
	3.2	Apprenticeship tax (General Tax Code, Art. 58 to 173)	Payable by any person subject to the BIC, BNC, or IS, on total wages and other compensation.	Total or partial exemption possible with justification of measures taken to promote apprenticeships. Exemption fee transferred to FONAP (the National Apprenticeship Fund).	1.2 percent.
4.	Property taxes
	4.1	Real estate
	4.1.1	Land taxes
	4.1.1.1	Land tax on developed property (General Tax Code, Art. 678 to 690)	Annual tax on buildings and facilities or fixed equipment of industrial enterprises as well as land assigned to industrial or commercial use, levied on behalf of municipalities with financial autonomy. Calculated on the rental value assessed over five years by the direct taxes unit.	Abatement of 50 percent of the rental value for depreciation and maintenance costs. Temporary exemption for new construction: - five years for residential buildings; - two years for others. However, the exemption is removed for rental buildings and apartments when the rental value on January 1 of the tax year exceeds 15 percent of the actual value on the same date.	12 percent of the rental value in N’Djamena (1993 Budget Law); 11 percent elsewhere.
4.1.1.2		Land tax on undeveloped property (General Tax Code, Art. 680 and 691 to 704)	Annual tax on undeveloped land in urban areas and land in rural areas. Assessed on the following rental value: - urban areas: 10 percent of the value established over five years by the Tax Directorate; - rural areas: lumpsum value is established at CFAF 50,000 per hectare. Collected in favor of autonomous local authorities.	Temporary exemption of three to eight years for land newly set aside for farming or stockraising. Permanent exemption for land belonging to the central government or local authorities. Lumpsum abatement representing 20 percent of the rental value.	21 percent of the rental value in N’Djamena; 20 percent elsewhere.
	4.1.2	Tax on recreational land, undeveloped or insufficiently developed land, building lots (General Tax Code Art. 187 to 197)	Levied in favor of the state on land considered as being situated within the communes of N’Djamena, Sarh, and Moundou. In practice, this tax is no longer applied.
	4.1.3	Tax on rental value of professional premises (General Tax Code, Art. 764 to 768)	Levied in favor of local authorities under the same conditions as the business license tax, on industrial and commercial premises used to engage in an activity requiring a business license.		Annual rent: - less than CFAF60,000: exempt - CFAF 60,001 to 120,000: 6 percent - CFAF 120,001 to 300,000: 9 percent - CFAF 300,001 to 600,000: 12 percent - Over CFAF 600,000: 15 percent
	4.2	Estate duties and gift taxes (General Tax Code, Art. 269 to 285)	Levied on the net value of assets transferred causa mortis or inter vivos in Chad.	Abatement of CFAF 5 million per living child or deceased child with heirs or per dependent elder.	Variable, depending on the relationship of the inheritor or beneficiary to the deceased or donor.
	4.3	Transfer taxes
	4.3.1	Tax on the creation or merger of companies (General Tax Code, Art. 260)	Levied on the capital of new companies and companies created by mergers, capital increases, transfers of shares, and changes of title.		3 percent on the capital of new companies and on core capital increases, and 5 percent for the incorporation of profits and reserves.
	4.3.2	Property transfer tax (General Tax Code, Art. 391 et seq.)	Levied on the sale, lease, or exchange of buildings.		5 percent for verbal leases, 10 percent for sales and exchanges of buildings, and 6 percent for auction records. Suggested prices per sq. m. serving as reference minimums were defined in the 2001 Budget Law.
	4.3.3	Tax on transfers of movable property	Levied on the sale and lease of movable property.		Variable, from 3 percent to 6 percent, depending on the type of operation.
	4.3.4	Tax on other operations	Levied on some transactions, in particular transfers of claims, goodwill, and government contracts.		Single rate of 10 percent.
	4.3.5	Land conservation tax	Levied at the time of registration of real property rights.		Land conservation: - 4/1000 of the value of the investment; - registration: CFAF 15,000 - de-registration: 2 percent.
5. Taxes on goods and services
	5.1	General sales tax
	5.1.1	Value added tax	Levied on all production, import, and services business. Applies to all individuals and corporations, including government bodies and public law entities.	Retail sales enterprises with a turnover of less than CFAF 30 million and suppliers with a turnover of less than CFAF 20 million (but option possible). Also, direct sales of their products by farmers, stockbreeders, fishermen; social, educational, and religious services; medical and artistic activities; certain duly listed basic commodities; the first 14 cu. m. per month of safe water sold by the STEE; and operations subject to the insurance tax or other specific taxation. VAT paid upstream on properly drawn up invoices by taxpayers or in customs is deductible from VAT received. Credits may be refunded for exporters and large investors. The right to a deduction is limited for enterprises engaging in both taxable and nontaxable operations.	18 percent and 0 percent for exports and international transport.
	5.1.1	Value added tax	Filing and payment on the 10^th and the 15^th day of each month.
	5.1.2	Tax on livestock sales (General Tax Code, Art. 153 to 157)	Levied on operations related to livestock sales. Paid by buyers to market officials, using tickets supplied by the Tax Administration.
	5.1.3	Tax on livestock exports (CGI, Art. 26 ter)	Lumpsum paid at customs.		Variable, depending on the livestock category: CFAF 2,000 (camels) CAFA 2,500 (horses), CFAF 1,500 (cattle), CFAF 300 (donkeys), and CFAF 200 (sheep and goats), CFAF 100 (rawhide).
	5.2	Tax on petroleum products (Ordinance 11 gis of 7/31/87)	Assessed and collected by the Petroleum Taxation Bureau (BFP) for the General Treasury. The tax is distributed, on the basis of an allocative key for each product, among the state Budget, the CNRT (National Retired Workers’ Fund) and the OFNAR (National Roads Office).	Petroleum by-products and derivatives are exempt (e.g., lubricants, heavy fuel oil, casing head gas, paraffin, petroleum wax, asphalt and asphalt blends, petroleum spirits, petroleum coke).	2003 Budget Law: Premium-grade gasoline: CFAF 141 per liter Gasoline: CFAF 141 per liter Domestic kerosene: CFAF 0 per liter Diesel oil: CFAF 79 per liter Aviation gasoline: CFAF 6 per liter
	5.3	Tax on insurance contracts (General Tax Code, Art. 449 et seq.)	Levied on insurance contracts. Paid by companies on a quarterly basis.		Life insurance: 1 percent Maritime insurance: 8 percent Auto insurance: 20 percent Multirisk insurance: 20 percent Fire insurance: 30 percent
	5.4	Tax on the use of movable and immovable property and on business licenses
	5.4.1	Tax on business and other licenses
	5.4.1.1	Business license tax (General Tax Code, Art. 705 to 739)	Levied annually in favor of autonomous local authorities, or, where none exist, the central government, on individuals and companies engaged in commercial, industrial, or professional businesses that are not explicitly exempt.	New industries may be exempt for their first five years of operation.	Broken down into two components: (1) a fixed duty ranging from CFAF 3,035 to CFAF 438,750; and (2) if appropriate, a tax that is variable, depending on the number of wage earners employed and the physical resources in use.
	5.4.1.1	Business license tax (General Tax Code, Art. 705 to 739)			The duties are increased by 10 percent in favor of the Consular Chamber and by 10 percent in favor of the National Social Security Fund (2003 Budget Law).
	5.4.1.2	License tax (General Code, Art. 744 to 746)	Levied annually in favor of autonomous local authorities, or, where none exist, the central government, on all beverage vendors.		Variable, from CFAF 2,000 to CFAF 165,000, depending on the value of the beverage, whether consumed on the premises or not and whether imported or not.
	5.4.2	Motor vehicles
	5.4.2.1	Motor vehicle registration tax (General Tax Code, Art. 646 to 652)	Levied on motor vehicle registration, re-registration, transfer of ownership, and similar operations.	Government, embassy, and NGO vehicles.	Fixed, ranging from CFAF 8,000 to CFAF 53,000, depending on the vehicle and its engine size.
	5.4.2.2	Motor vehicle use tax (General Tax Code, Art. 653 to 663)	Annual tax payable by vehicle owner.	Same as above.	Fixed, ranging from CFAF 5,625 to CFAF 69,375, depending on the vehicle and its engine size.
	5.5	Tax on travel	Levied on passengers on international and domestic flights.	Civil servants on official mission, minors, medical evacuations.	International flights: - Nationals: CFAF 3,000 - Foreigners: CFAF 5,000 Domestic flights: CFAF 500.
	5.6	Excise duties	Applicable to certain products listed in Law 6 PR/95. Application of a rate on customs valuation (imports) or on sales price (factory gate).		Defined by ministerial order. Mineral and carbonated water: 5 percent Beer, wine, and other fermented drinks: 25 percent Composed alcoholic beverages: 30 percent Cigars, cigarettes, tobacco: 20 percent Jewels and precious stones: 20 percent Electrical and electronic materials: 20 percent
6.	Duties and taxes on foreign trade
	6.1	Taxes on imports
	6.1.1	Common external tariff	Applied to all imports from non-UDEAC countries.	Products intended for government agencies or financed with a foreign grant or loan. Wheat, rice, sorghum, and pharmaceutical products.	4 categories: Category 1: 5 percent Category 2:10 percent Category 3:20 percent Category 4: 30 percent
	6.1.2	VAT on imports (Art. 23-26, CD-UDEAC)	Levied on all imported products, whatever their origin or source. The tax base is the value, c.i.f, plus customs duty and entry tax, and excise taxes where applicable (Ordinance 01/PR/96).	As in Art. 214 of the Customs Code and UDEAC Act 2/92. Essential goods (medicines, milk, poultry meat, bread, etc.).	18 percent.
	6.1.4	Supplementary tax	Incorporated into the import duty on certain products. Same rules of assessment (value, c.i.f), liquidation, and collection as for import duty.	List of products: sugar, rubber, palm oil, cotton, cottonseed, beer, cigarettes, alcohol, and soap.	25 percent.
	6.1.5	Statistical tax	Levied on all operations requiring itemized filing. Assessed on the value, c.i.f, or the official value of goods.		2.0 percent, with a minimum of CFAF 1,000 collected per filing.
	6.1.6	Storage and custody tax	Levied on goods that have not been the subject of itemized filing within the legally required time frame (15 days) or that remain in bond for other reasons.	n.a.	First 10 days: CFAF 5 Days 11-20: CFAF 10 From day 21 onwards: CFAF 30 per day and per 50 kg or fraction thereof.
	6.1.7	Transit tax	Levied on petroleum products.		0.8 percent of taxable value.
	6.1.8	Preferential tax	Levied on animal products from non-CAEMC countries.		0.4 percent of UDEAC customs valuation.
	6.2	Export duty and taxes
	6.2.1	Exit tax	Applicable to products of animal source (livestock, skins) and plant source (cotton, oilseeds). Assessed on the official value or the value, f.o.b.	Products other than those indicated under “Nature of Tax.”	0.5-30 percent of the value, f.o.b.
	6.2.2	Research and control taxes	Assessed on the value, f.o.b., of goods.		0.5 percent.
	6.2.3	Statistical tax	Collected on all export operations. Assessed on the value, f.o.b., of goods.		2 percent, with a minimum of CFAF 1,000 collected per filing.

Tax			Nature of Tax	Exemptions and Deductions	Rates
1. Tax on net income and profits
	1.1	Tax on net income and profits of companies
	1.1.1	Corporate tax (IS) (General Tax Code, Art. 115 to 135)	Levied annually on the profits of corporations engaged in industrial, commercial, agricultural, or noncommercial business. Capital gains from the transfer of assets are considered part of gross profits except in the case of transfers when going out of business, for which only a fraction is included, in proportion to the length of the operation (50 percent if the transfer occurs after more than five years). Possibility of capital gains exemption if reinvested.	Agricultural production and consumption cooperatives; agricultural associations; teaching and professional training associations and cooperatives. Exemption during the first five years of operation for new enterprises eligible under one of the Investment Code schemes.	- 40 percent (law for 2003 budget): general regime; and - 25 percent for income earned by nongovernmental organizations, associations and public nonprofit institutions (CGI, Art. 130).
			Paid in one-third advance installments.
			Profits are declared within three months of year-end, and the tax must be paid on a voluntary basis in the month after filing of the return.
	1.1.2	Minimum tax (General Tax Code, Art. 183 to 186)	Assessed on the preceding month’s turnover. The tax must be paid voluntarily. It is included in the calculation of annual taxes when these are filed and paid. Any overpayments are nonrefundable and ultimately accrue to the public Treasury.	Same as 1.1.1.	- Single rate of 1.5 percent on turnover, all taxes included.
	1.2	Personal income tax (IRPP)	Assessed on net annual income received or earned, whatever its source. Principle of taxation by household. Gross income is calculated by adding together income from the different categories. Net income is obtained after deduction of deficits from previous years and interest on borrowing for real estate investment. A tax return must be filed by March 1 of each year. Income is assessed according to rules established for each category. There are seven categories of income: (1) wages and salaries; (2) property income; (3) investment income; (4) industrial and commercial profits; (5) income from noncommercial activities; (6) remuneration of managers with majority shareholding; and (7) income from abroad.	The fiscal system is taken into account by application of the system of splitting family income (1 share for the husband, 1 share for the wife, and 1/2 share per dependent child and up to a maximum of 5 shares per family). The following reductions also apply: - the contribution is reduced by 20 percent for income per share not exceeding CFAF 300,000; - the 20 percent reduction of the contribution is reduced by 1 point per bracket of CFAF 1,000 for income per share between CFAF 300,000 and CFAF 310,000; - the contribution is reduced by 10 percent for income per share between CFAF 310,000 and CFAF 600,000; - the 10 percent reduction applicable to the contribution is decreased by 1 point per CFAF 1,000 for income per share between CFAF 600,000 and CFAF 610,000.	Progressive scale from 20 percent to 65 percent. Rate per share: - CFAF 1-300,000: 20 percent - CFAF 300,001-800,000: 25 percent - CFAF 800,001-1,000,000: 30 percent - CFAF 1,000,001-1,500,000: 40 percent - CFAF 1,500,001-2,000,000: 45 percent - CFAF 2,000,001-3,000,000: 50 percent - CFAF 3,000,001-6,000,000: 55 percent - CFAF 6,000,000 and above: 65 percent.
	1.2.1 Salaries, pensions, and life annuities (General Tax Code, Art. 37 to 41)		The tax base consists of total gross remuneration and benefits in cash and in kind, assessed at 15 percent for free housing and a variable percentage (between 1 and 8 percent) for other benefits.	Deductions: withholdings by the employer for the creation of merged pension funds and social security withholdings. The amount thus obtained is subject to a standard abatement of 40 percent.	The IRPP scale is applied after deduction of a tax credit of 4 percent of net taxable income in the form of wages and salaries. It is withheld at source by the employer and forwarded to the Treasury in the first 20 days of the following month. The amount withheld is an installment of the tax ultimately payable.
	1.2.2 Property income (General Tax Code, Art. 12 and 13)		The tax base consists of gross income from developed and undeveloped property that is not included as part of the profits of an industrial, commercial, artisanal, or agricultural enterprise, or a noncommercial profession.	Net income is obtained by reducing gross income by 30 percent for management, insurance, repair, maintenance, and amortization costs. Owner-occupied premises are exempt.	Withheld at source when the lessee is a partnership or an incorporated company, whether or not it is subject to corporate tax, in the amount of: - 15 percent of the rent if the beneficiary resides in Chad; - 20 percent if the beneficiary does not reside in Chad. The amount withheld at source is credited against personal income tax and is paid monthly.
	1.2.3 Income from movable capital (General Tax Code, Art. 51 to 68)		The tax base consists of income from securities, shares, shares (equity securities), directors’ fees and remuneration, income from claims, security and other deposits, investments. Gross income is obtained by adding all the amounts collected [and] related tax credits.		Withheld at source at the single rate of 20 percent. The amount withheld is deductible from the annual amount of the IRPP.
1.2.4	Industrial and commercial income
1.2.4.1	Industrial and commercial profits (BIC) (General Tax Code, Art. 14 to 35)		Gross income consists of net profits received or payable from industrial, commercial, artisanal, and agricultural activities exercised by individuals. Capital gains from the transfer of assets are normally considered to be profits. However, in the case of a complete transfer of assets, 50 percent of the capital gains is deducted if the transfer takes place within five years of creation and 25 percent if the transfer takes place after five years. Profits are subject to the presumptive tax, for turnovers of less than CFAF 30 million (small businesses or small farmers) or CFAF 20 million (other activities). The tax on real income is applied to turnovers over the above-mentioned ceilings.	Taxable profits are subject to a lumpsum abatement of 20 percent for activities other than: - purchase/resale; - insurance, banking, credit, freight forwarding; - brokers, business agents; - leasing of equipment or funds.	Withheld at source at the single rate of 1.5 percent. See 1.2 above.
	1.2.4.2	Withholding at source on wholesale purchases and sales	Levied on purchases from and sales to wholesalers. Deducted from the IRPP payable on total income; no refunds made. Extended to importers and government suppliers. Replaces the turnover tax on services.	Suspension for three months (renewable) of the 4 percent prepayment for corporations current with their tax obligations.	4 percent on the amount of invoices.
	1.2.4.2	Withholding at source on wholesale purchases and sales		The 4 percent prepayment is credited toward the annual payment of the tax.
	1.2.4.3	Minimum tax	IRPP installment (itemized system) payable but not refundable. Assessed on turnover in the current year. Monthly payment is based on the previous month’s turnover.	Lumpsum taxpayers are not subject to the minimum tax. However, their business license is increased by an amount that serves as part payment of the IRPP/BIC.	Withheld at source at the single rate of 1.5 percent.
	1.2.5	Noncommercial profits (BNC) (General Tax Code, Art. 42 to 50)	Gross income consists of net profits from a professional activity, position, or office, or a profitable operation not forming part of another income category. Income is calculated on the basis of either: - actual profits; or - estimated profits.	Only 80 percent of the profits identified are taxable.	Withheld at source at the rate of 20 percent, levied as a part payment on invoices and fees and commissions. Taxpayers without a permanent professional office in Chad are subject to withholding at source equal to 12.5 percent of the amount of the contract, in discharge of the IRPP.
	1.2.6	Remuneration of directors with majority shareholding and directors of limited partnerships (General Tax Code, Art. 36)	The tax base consists of the wages, lumpsum reimbursements of expenses, and any other remuneration deductible from company profits.	The deduction of professional expenses may not exceed 15 percent of the amounts collected.
	1.2.7	Income received outside Chad	Taxed in its entirety in Chad unless otherwise indicated in international conventions. In that case, the so-called effective rate rule applies.		Single rate of 25 percent.
	1.2.8	Tax on capital gains from land transfers	Levied on capital gains realized by individuals or corporations on transfers of developed or undeveloped land acquired less than seven years earlier. This tax has been abandoned in practice.
	1.3	Miscellaneous
	1.3.1	Contribution to the Rural Action Fund (Fonds d’Intervention Rurale (FIR)	Payable by all individuals subject to head tax or the IRPP.		- Individuals subject to the head tax: CFAF 100. - Wage earners: CFAF 40 a month.
1.4 General Lumpsum Tax (Impôt Général Libératoire—IGL)			Replaces the lumpsum turnover tax (TCA), BIC, BNC, and tax on agricultural profits (BA). Payable by sole proprietorships whose turnover is less than CFAF 30 million for purchases/resale and less than CFAF 20 million for suppliers and noncommercial profits.	Corporations and sole proprietorships subject to the tax on real income using the simplified tax return, and some professional categories.	The rate varies depending on the activity and the location.
2. Social security contributions
	2.1	Family benefits allowances	Employer is responsible for contribution.	Monthly wages ceiling: CFAF 130,000.	Service delivery: 16 percent General scheme: 6 percent, including 0.1 percent to the manpower office; Domestic employees: CFAF 1,200 a month per employee.
	2.2	Industrial accidents	As above.	As above.	General scheme: 2.5 percent (increased to 4 percent in cases of violation of safety regulations).
	2.3	Retirement	Contribution shared by employer and employee.	As above.	Employer: 4 percent. Employee: 2 percent. Civil service wages and salaries: 5 percent.
3. Payroll taxes
	3.1	Lumpsum tax payable by employers and annuity grantors (General Tax Code, Art. 174 to 177)	Assessed on total gross remuneration, consideration in kind, allowances, and lumpsum reimbursements. Paid by private sector employers on a monthly basis.		7.5 percent of gross taxable total.
	3.2	Apprenticeship tax (General Tax Code, Art. 58 to 173)	Payable by any person subject to the BIC, BNC, or IS, on total wages and other compensation.	Total or partial exemption possible with justification of measures taken to promote apprenticeships. Exemption fee transferred to FONAP (the National Apprenticeship Fund).	1.2 percent.
4.	Property taxes
	4.1	Real estate
	4.1.1	Land taxes
	4.1.1.1	Land tax on developed property (General Tax Code, Art. 678 to 690)	Annual tax on buildings and facilities or fixed equipment of industrial enterprises as well as land assigned to industrial or commercial use, levied on behalf of municipalities with financial autonomy. Calculated on the rental value assessed over five years by the direct taxes unit.	Abatement of 50 percent of the rental value for depreciation and maintenance costs. Temporary exemption for new construction: - five years for residential buildings; - two years for others. However, the exemption is removed for rental buildings and apartments when the rental value on January 1 of the tax year exceeds 15 percent of the actual value on the same date.	12 percent of the rental value in N’Djamena (1993 Budget Law); 11 percent elsewhere.
4.1.1.2		Land tax on undeveloped property (General Tax Code, Art. 680 and 691 to 704)	Annual tax on undeveloped land in urban areas and land in rural areas. Assessed on the following rental value: - urban areas: 10 percent of the value established over five years by the Tax Directorate; - rural areas: lumpsum value is established at CFAF 50,000 per hectare. Collected in favor of autonomous local authorities.	Temporary exemption of three to eight years for land newly set aside for farming or stockraising. Permanent exemption for land belonging to the central government or local authorities. Lumpsum abatement representing 20 percent of the rental value.	21 percent of the rental value in N’Djamena; 20 percent elsewhere.
	4.1.2	Tax on recreational land, undeveloped or insufficiently developed land, building lots (General Tax Code Art. 187 to 197)	Levied in favor of the state on land considered as being situated within the communes of N’Djamena, Sarh, and Moundou. In practice, this tax is no longer applied.
	4.1.3	Tax on rental value of professional premises (General Tax Code, Art. 764 to 768)	Levied in favor of local authorities under the same conditions as the business license tax, on industrial and commercial premises used to engage in an activity requiring a business license.		Annual rent: - less than CFAF60,000: exempt - CFAF 60,001 to 120,000: 6 percent - CFAF 120,001 to 300,000: 9 percent - CFAF 300,001 to 600,000: 12 percent - Over CFAF 600,000: 15 percent
	4.2	Estate duties and gift taxes (General Tax Code, Art. 269 to 285)	Levied on the net value of assets transferred causa mortis or inter vivos in Chad.	Abatement of CFAF 5 million per living child or deceased child with heirs or per dependent elder.	Variable, depending on the relationship of the inheritor or beneficiary to the deceased or donor.
	4.3	Transfer taxes
	4.3.1	Tax on the creation or merger of companies (General Tax Code, Art. 260)	Levied on the capital of new companies and companies created by mergers, capital increases, transfers of shares, and changes of title.		3 percent on the capital of new companies and on core capital increases, and 5 percent for the incorporation of profits and reserves.
	4.3.2	Property transfer tax (General Tax Code, Art. 391 et seq.)	Levied on the sale, lease, or exchange of buildings.		5 percent for verbal leases, 10 percent for sales and exchanges of buildings, and 6 percent for auction records. Suggested prices per sq. m. serving as reference minimums were defined in the 2001 Budget Law.
	4.3.3	Tax on transfers of movable property	Levied on the sale and lease of movable property.		Variable, from 3 percent to 6 percent, depending on the type of operation.
	4.3.4	Tax on other operations	Levied on some transactions, in particular transfers of claims, goodwill, and government contracts.		Single rate of 10 percent.
	4.3.5	Land conservation tax	Levied at the time of registration of real property rights.		Land conservation: - 4/1000 of the value of the investment; - registration: CFAF 15,000 - de-registration: 2 percent.
5. Taxes on goods and services
	5.1	General sales tax
	5.1.1	Value added tax	Levied on all production, import, and services business. Applies to all individuals and corporations, including government bodies and public law entities.	Retail sales enterprises with a turnover of less than CFAF 30 million and suppliers with a turnover of less than CFAF 20 million (but option possible). Also, direct sales of their products by farmers, stockbreeders, fishermen; social, educational, and religious services; medical and artistic activities; certain duly listed basic commodities; the first 14 cu. m. per month of safe water sold by the STEE; and operations subject to the insurance tax or other specific taxation. VAT paid upstream on properly drawn up invoices by taxpayers or in customs is deductible from VAT received. Credits may be refunded for exporters and large investors. The right to a deduction is limited for enterprises engaging in both taxable and nontaxable operations.	18 percent and 0 percent for exports and international transport.
	5.1.1	Value added tax	Filing and payment on the 10^th and the 15^th day of each month.
	5.1.2	Tax on livestock sales (General Tax Code, Art. 153 to 157)	Levied on operations related to livestock sales. Paid by buyers to market officials, using tickets supplied by the Tax Administration.
	5.1.3	Tax on livestock exports (CGI, Art. 26 ter)	Lumpsum paid at customs.		Variable, depending on the livestock category: CFAF 2,000 (camels) CAFA 2,500 (horses), CFAF 1,500 (cattle), CFAF 300 (donkeys), and CFAF 200 (sheep and goats), CFAF 100 (rawhide).
	5.2	Tax on petroleum products (Ordinance 11 gis of 7/31/87)	Assessed and collected by the Petroleum Taxation Bureau (BFP) for the General Treasury. The tax is distributed, on the basis of an allocative key for each product, among the state Budget, the CNRT (National Retired Workers’ Fund) and the OFNAR (National Roads Office).	Petroleum by-products and derivatives are exempt (e.g., lubricants, heavy fuel oil, casing head gas, paraffin, petroleum wax, asphalt and asphalt blends, petroleum spirits, petroleum coke).	2003 Budget Law: Premium-grade gasoline: CFAF 141 per liter Gasoline: CFAF 141 per liter Domestic kerosene: CFAF 0 per liter Diesel oil: CFAF 79 per liter Aviation gasoline: CFAF 6 per liter
	5.3	Tax on insurance contracts (General Tax Code, Art. 449 et seq.)	Levied on insurance contracts. Paid by companies on a quarterly basis.		Life insurance: 1 percent Maritime insurance: 8 percent Auto insurance: 20 percent Multirisk insurance: 20 percent Fire insurance: 30 percent
	5.4	Tax on the use of movable and immovable property and on business licenses
	5.4.1	Tax on business and other licenses
	5.4.1.1	Business license tax (General Tax Code, Art. 705 to 739)	Levied annually in favor of autonomous local authorities, or, where none exist, the central government, on individuals and companies engaged in commercial, industrial, or professional businesses that are not explicitly exempt.	New industries may be exempt for their first five years of operation.	Broken down into two components: (1) a fixed duty ranging from CFAF 3,035 to CFAF 438,750; and (2) if appropriate, a tax that is variable, depending on the number of wage earners employed and the physical resources in use.
	5.4.1.1	Business license tax (General Tax Code, Art. 705 to 739)			The duties are increased by 10 percent in favor of the Consular Chamber and by 10 percent in favor of the National Social Security Fund (2003 Budget Law).
	5.4.1.2	License tax (General Code, Art. 744 to 746)	Levied annually in favor of autonomous local authorities, or, where none exist, the central government, on all beverage vendors.		Variable, from CFAF 2,000 to CFAF 165,000, depending on the value of the beverage, whether consumed on the premises or not and whether imported or not.
	5.4.2	Motor vehicles
	5.4.2.1	Motor vehicle registration tax (General Tax Code, Art. 646 to 652)	Levied on motor vehicle registration, re-registration, transfer of ownership, and similar operations.	Government, embassy, and NGO vehicles.	Fixed, ranging from CFAF 8,000 to CFAF 53,000, depending on the vehicle and its engine size.
	5.4.2.2	Motor vehicle use tax (General Tax Code, Art. 653 to 663)	Annual tax payable by vehicle owner.	Same as above.	Fixed, ranging from CFAF 5,625 to CFAF 69,375, depending on the vehicle and its engine size.
	5.5	Tax on travel	Levied on passengers on international and domestic flights.	Civil servants on official mission, minors, medical evacuations.	International flights: - Nationals: CFAF 3,000 - Foreigners: CFAF 5,000 Domestic flights: CFAF 500.
	5.6	Excise duties	Applicable to certain products listed in Law 6 PR/95. Application of a rate on customs valuation (imports) or on sales price (factory gate).		Defined by ministerial order. Mineral and carbonated water: 5 percent Beer, wine, and other fermented drinks: 25 percent Composed alcoholic beverages: 30 percent Cigars, cigarettes, tobacco: 20 percent Jewels and precious stones: 20 percent Electrical and electronic materials: 20 percent
6.	Duties and taxes on foreign trade
	6.1	Taxes on imports
	6.1.1	Common external tariff	Applied to all imports from non-UDEAC countries.	Products intended for government agencies or financed with a foreign grant or loan. Wheat, rice, sorghum, and pharmaceutical products.	4 categories: Category 1: 5 percent Category 2:10 percent Category 3:20 percent Category 4: 30 percent
	6.1.2	VAT on imports (Art. 23-26, CD-UDEAC)	Levied on all imported products, whatever their origin or source. The tax base is the value, c.i.f, plus customs duty and entry tax, and excise taxes where applicable (Ordinance 01/PR/96).	As in Art. 214 of the Customs Code and UDEAC Act 2/92. Essential goods (medicines, milk, poultry meat, bread, etc.).	18 percent.
	6.1.4	Supplementary tax	Incorporated into the import duty on certain products. Same rules of assessment (value, c.i.f), liquidation, and collection as for import duty.	List of products: sugar, rubber, palm oil, cotton, cottonseed, beer, cigarettes, alcohol, and soap.	25 percent.
	6.1.5	Statistical tax	Levied on all operations requiring itemized filing. Assessed on the value, c.i.f, or the official value of goods.		2.0 percent, with a minimum of CFAF 1,000 collected per filing.
	6.1.6	Storage and custody tax	Levied on goods that have not been the subject of itemized filing within the legally required time frame (15 days) or that remain in bond for other reasons.	n.a.	First 10 days: CFAF 5 Days 11-20: CFAF 10 From day 21 onwards: CFAF 30 per day and per 50 kg or fraction thereof.
	6.1.7	Transit tax	Levied on petroleum products.		0.8 percent of taxable value.
	6.1.8	Preferential tax	Levied on animal products from non-CAEMC countries.		0.4 percent of UDEAC customs valuation.
	6.2	Export duty and taxes
	6.2.1	Exit tax	Applicable to products of animal source (livestock, skins) and plant source (cotton, oilseeds). Assessed on the official value or the value, f.o.b.	Products other than those indicated under “Nature of Tax.”	0.5-30 percent of the value, f.o.b.
	6.2.2	Research and control taxes	Assessed on the value, f.o.b., of goods.		0.5 percent.
	6.2.3	Statistical tax	Collected on all export operations. Assessed on the value, f.o.b., of goods.		2 percent, with a minimum of CFAF 1,000 collected per filing.

Chad: Basic Data

Sources: Chadian authorities; and IMF staff estimates.

^{^1/}Excludes official transfers.

^{^2/}Includes official transfers.

^{^3/}After stock-of-debt operation.

^{^4/}In percent of exports of goods and nonfactor services.

Chad: Basic Data

			1998	1999	2000	2001	2002	2003	2004	2005
			(In billions of CFA francs)
Gross domestic product
		At current prices	1,029.3	944.9	986.1	1,253.0	1,385.3	1,582.4	2,332.2	3,111.2
		At constant prices (1995=100)	832.8	827.1	819.8	915.4	993.1	1,139.3	1,495.6	1,677.9
Government finance
	Total revenue and grants		127.1	122.3	135.4	155.5	197.4	247.4	267.4	393.8
		Of which: grants	50.9	44.6	55.2	63.8	84.9	122.7	69.4	104.2
	Expenditure and net lending		153.3	178.8	203.2	220.3	280.3	348.0	336.8	404.9
		Current	75.0	87.9	99.9	109.8	140.0	149.4	154.7	187.3
		Capital and net lending	78.4	90.9	103.3	110.5	140.3	198.6	182.1	217.7
	Overall balance (commitment basis, including gran		-26.2	-56.5	-67.8	-64.9	-83.0	-100.7	-69.4	-11.1
Money and credit (end of period)
	Net foreign assets		42.7	37.4	35.9	27.8	81.3	50.3	61.3	86.6
		Medium- and long-term foreign liabilities	0.0	-2.0	-2.3	-1.9	-2.4	-4.3	-5.5	-7.7
	Net domestic assets		62.8	68.9	89.7	125.6	109.3	136.3	132.4	252.9
		Credit to the public sector (net)	36.2	48.2	61.9	77.4	76.1	87.2	83.4	85.9
		Credit to the economy	54.3	59.1	65.9	79.8	79.1	98.1	92.9	129.6
		Other items (net)	-27.7	-38.4	-38.0	-31.5	-46.0	-49.1	-43.8	37.4
	Broad money		105.5	104.3	123.3	147.6	188.2	182.3	188.3	480.9
			(In millions, midyear)
Population			7.1	7.3	7.5	7.7	7.9	8.6	8.8	9.0
			(In billions of CFA francs)
Balance of payments
	Exports, f.o.b.		154.3	140.2	130.2	138.4	128.9	350.4	1142.1	1639.2
	Imports, f.o.b		-165.8	-162.3	-170.4	-377.8	-1107.3	-453.2	-462.3	-428.1
		Trade balance (including oil sector)	-11.5	-22.1	-40.2	-239.4	-978.4	-102.8	679.8	1211.1
	Services (net, including oil sector)		-102.5	-109.0	-135.2	-199.0	-420.4	-439.8	-674.0	-736.2
	Factor income (net)		-0.4	-1.0	-12.4	-16.5	-41.5	-265.3	-231.5	-543.2
	Private transfers (net)		14.0	5.5	4.6	14.4	22.9	14.6	41.9	32.5
		Current account balance ^1/	-100.4	-126.6	-183.2	-440.5	-1417.4	-793.3	-183.8	-35.8
	Official transfers		29.0	20.1	31.4	18.4	26.9	43.0	72.9	62.3
		Current account balance ^2/	-71.4	-106.5	-151.8	-422.1	-1390.5	-750.3	-110.9	26.5
	Medium- and long-term capital (net)		64.1	81.1	155.4	491.3	752.7	540.8	390.6	420.6
	Short-term capital (net), and errors and omissions		6.4	10.3	-2.4	-77.2	674.2	182.8	-267.2	-436.7
		Overall balance	-0.9	-15.2	1.1	-8.0	36.3	-26.7	12.5	10.5
External public debt
		Stock of debt (in billions of CFA francs) ^3/	558.4	619.8	721.7	721.9	732.8	731.3	756.6	880.7
		Debt service ^4/	15.1	38.1	26.8	27.6	15.2	4.4	1.5	0.2
			(CFA francs per U.S. dollar)
Exchange rate (annual average)			590	615	710	732	695	580	528	531

Sources: Chadian authorities; and IMF staff estimates.

^{^1/}Excludes official transfers.

^{^2/}Includes official transfers.

^{^3/}After stock-of-debt operation.

^{^4/}In percent of exports of goods and nonfactor services.

Chad: Basic Data

			1998	1999	2000	2001	2002	2003	2004	2005
			(In billions of CFA francs)
Gross domestic product
		At current prices	1,029.3	944.9	986.1	1,253.0	1,385.3	1,582.4	2,332.2	3,111.2
		At constant prices (1995=100)	832.8	827.1	819.8	915.4	993.1	1,139.3	1,495.6	1,677.9
Government finance
	Total revenue and grants		127.1	122.3	135.4	155.5	197.4	247.4	267.4	393.8
		Of which: grants	50.9	44.6	55.2	63.8	84.9	122.7	69.4	104.2
	Expenditure and net lending		153.3	178.8	203.2	220.3	280.3	348.0	336.8	404.9
		Current	75.0	87.9	99.9	109.8	140.0	149.4	154.7	187.3
		Capital and net lending	78.4	90.9	103.3	110.5	140.3	198.6	182.1	217.7
	Overall balance (commitment basis, including gran		-26.2	-56.5	-67.8	-64.9	-83.0	-100.7	-69.4	-11.1
Money and credit (end of period)
	Net foreign assets		42.7	37.4	35.9	27.8	81.3	50.3	61.3	86.6
		Medium- and long-term foreign liabilities	0.0	-2.0	-2.3	-1.9	-2.4	-4.3	-5.5	-7.7
	Net domestic assets		62.8	68.9	89.7	125.6	109.3	136.3	132.4	252.9
		Credit to the public sector (net)	36.2	48.2	61.9	77.4	76.1	87.2	83.4	85.9
		Credit to the economy	54.3	59.1	65.9	79.8	79.1	98.1	92.9	129.6
		Other items (net)	-27.7	-38.4	-38.0	-31.5	-46.0	-49.1	-43.8	37.4
	Broad money		105.5	104.3	123.3	147.6	188.2	182.3	188.3	480.9
			(In millions, midyear)
Population			7.1	7.3	7.5	7.7	7.9	8.6	8.8	9.0
			(In billions of CFA francs)
Balance of payments
	Exports, f.o.b.		154.3	140.2	130.2	138.4	128.9	350.4	1142.1	1639.2
	Imports, f.o.b		-165.8	-162.3	-170.4	-377.8	-1107.3	-453.2	-462.3	-428.1
		Trade balance (including oil sector)	-11.5	-22.1	-40.2	-239.4	-978.4	-102.8	679.8	1211.1
	Services (net, including oil sector)		-102.5	-109.0	-135.2	-199.0	-420.4	-439.8	-674.0	-736.2
	Factor income (net)		-0.4	-1.0	-12.4	-16.5	-41.5	-265.3	-231.5	-543.2
	Private transfers (net)		14.0	5.5	4.6	14.4	22.9	14.6	41.9	32.5
		Current account balance ^1/	-100.4	-126.6	-183.2	-440.5	-1417.4	-793.3	-183.8	-35.8
	Official transfers		29.0	20.1	31.4	18.4	26.9	43.0	72.9	62.3
		Current account balance ^2/	-71.4	-106.5	-151.8	-422.1	-1390.5	-750.3	-110.9	26.5
	Medium- and long-term capital (net)		64.1	81.1	155.4	491.3	752.7	540.8	390.6	420.6
	Short-term capital (net), and errors and omissions		6.4	10.3	-2.4	-77.2	674.2	182.8	-267.2	-436.7
		Overall balance	-0.9	-15.2	1.1	-8.0	36.3	-26.7	12.5	10.5
External public debt
		Stock of debt (in billions of CFA francs) ^3/	558.4	619.8	721.7	721.9	732.8	731.3	756.6	880.7
		Debt service ^4/	15.1	38.1	26.8	27.6	15.2	4.4	1.5	0.2
			(CFA francs per U.S. dollar)
Exchange rate (annual average)			590	615	710	732	695	580	528	531

Sources: Chadian authorities; and IMF staff estimates.

^{^1/}Excludes official transfers.

^{^2/}Includes official transfers.

^{^3/}After stock-of-debt operation.

^{^4/}In percent of exports of goods and nonfactor services.

Sources: Chadian authorities; World Bank, World Development Indicators Online, 2006; and IMF staff estimates.

				Level	(year)
Social and demographic indicators
	Population (midyear; in millions)			8.8	2004
	Population growth (annual percentage change)			2.5	2004
	GNP per capita (U.S. dollars)			452	2004
	Life expectancy at birth (years)			44	2004
	Infant mortality rate (per thousand)
		Under five years infant mortality rate (per thousand)		200	2004
	Population per physician			25,664	2004
	Adult illiteracy rate (in percent)
			Male	59	2004
			Female	87	2004
	Net primary enrollment			57	2003
	Ratio of girls to boys in primary and secondary education (in pel			58	2004

Sources: Chadian authorities; World Bank, World Development Indicators Online, 2006; and IMF staff estimates.

				Level	(year)
Social and demographic indicators
	Population (midyear; in millions)			8.8	2004
	Population growth (annual percentage change)			2.5	2004
	GNP per capita (U.S. dollars)			452	2004
	Life expectancy at birth (years)			44	2004
	Infant mortality rate (per thousand)
		Under five years infant mortality rate (per thousand)		200	2004
	Population per physician			25,664	2004
	Adult illiteracy rate (in percent)
			Male	59	2004
			Female	87	2004
	Net primary enrollment			57	2003
	Ratio of girls to boys in primary and secondary education (in pel			58	2004

Sources: Chadian authorities; World Bank, World Development Indicators Online, 2006; and IMF staff estimates.

Table 1.

Chad: Gross Domestic Product by Sector of Origin, 1998-2005

(At current prices)

Sources: Chadian authorities; and IMF staff estimates.

^{^1/}Includes oil production and transportation.

^{^2/}Includes investment of the oil sector related to the construction of the pipeline and explorations works.

Table 1.

Chad: Gross Domestic Product by Sector of Origin, 1998-2005

(At current prices)

		1998	1999	2000	2001	2002	2003	2004	2005
		(In billions of CFA francs)
Primary sector		401.5	359.7	401.4	504.9	525.1	691.2	1,459.1	1,997.1
	Agriculture	250.8	190.2	193.0	246.8	244.2	218.7	235.9	333.3
	Livestock	120.7	138.2	176.0	222.3	232.3	239.5	246.9	257.3
	Fishing and mining	30.0	31.3	32.5	35.8	48.6	55.3	49.5	58.3
	Oil Sector ^1/	0.0	0.0	0.0	0.0	0.0	177.7	926.8	1,348.2
Secondary sector		132.5	115.4	107.6	163.9	197.5	194.7	182.6	220.7
	Manufacturing and handicrafts	110.9	92.4	84.7	115.4	125.5	122.0	117.5	143.3
	Water and electricity	5.7	6.2	6.0	6.7	7.9	7.0	7.1	9.2
	Construction and public works	14.2	15.3	14.9	18.2	20.7	24.3	27.8	31.4
	Oil sector ^2/	1.7	1.5	2.1	23.7	43.5	41.4	30.2	35.7
Tertiary sector		449.7	429.9	439.6	538.8	608.6	642.6	633.7	840.0
	Commerce and transport	259.0	232.6	233.6	292.9	343.0	349.0	360.5	423.9
	Public administration	98.4	110.6	117.8	140.0	151.9	171.6	184.3	208.3
	Services	90.3	84.7	83.7	102.9	108.7	122.4	46.9	257.8
Sum of value added		983.6	905.0	948.6	1,207.6	1,331.2	1,528.5	2,275.3	3,057.8
Duties and taxes on imports		45.7	39.9	37.5	45.4	54.1	53.9	56.9	53.4
GDP at market prices		1,029.3	944.9	986.1	1,253.0	1,385.3	1,582.4	2,332.2	3,111.2
Non-oil GDP at market prices		1,027.7	943.4	984.0	1,229.4	1,341.9	1,363.3	1,375.2	1,727.3
		(In percent of total)
Primary sector		39.0	38.1	40.7	40.3	37.9	43.7	62.6	64.2
	Agriculture	24.4	20.1	19.6	19.7	17.6	13.8	10.1	10.7
	Livestock	11.7	14.6	17.8	17.7	16.8	15.1	10.6	8.3
	Fishing and mining	2.9	3.3	3.3	2.9	3.5	3.5	2.1	1.9
Secondary sector		12.9	12.2	10.9	13.1	14.3	12.3	7.8	7.1
	Manufacturing and handicrafts	10.8	9.8	8.6	9.2	9.1	7.7	5.0	4.6
	Water and electricity	0.6	0.7	0.6	0.5	0.6	0.4	0.3	0.3
	Construction and public works	1.4	1.6	1.5	1.4	1.5	1.5	1.2	1.0
Tertiary sector		43.7	45.5	44.6	43.0	43.9	40.6	27.2	27.0
	Commerce and transport	25.2	24.6	23.7	23.4	24.8	22.1	15.5	13.6
	Public administration	9.6	11.7	11.9	11.2	11.0	10.8	7.9	6.7
	Services	8.8	9.0	8.5	8.2	7.8	7.7	2.0	8.3
Sum of value added		95.6	95.8	96.2	96.4	96.1	96.6	97.6	98.3
Duties and taxes on imports		4.4	4.2	3.8	3.6	3.9	3.4	2.4	1.7
GDP at market prices		100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
Non-oil GDP at market prices		99.8	99.8	99.8	98.1	96.9	86.2	59.0	55.5

Sources: Chadian authorities; and IMF staff estimates.

^{^1/}Includes oil production and transportation.

^{^2/}Includes investment of the oil sector related to the construction of the pipeline and explorations works.

Table 1.

Chad: Gross Domestic Product by Sector of Origin, 1998-2005

(At current prices)

		1998	1999	2000	2001	2002	2003	2004	2005
		(In billions of CFA francs)
Primary sector		401.5	359.7	401.4	504.9	525.1	691.2	1,459.1	1,997.1
	Agriculture	250.8	190.2	193.0	246.8	244.2	218.7	235.9	333.3
	Livestock	120.7	138.2	176.0	222.3	232.3	239.5	246.9	257.3
	Fishing and mining	30.0	31.3	32.5	35.8	48.6	55.3	49.5	58.3
	Oil Sector ^1/	0.0	0.0	0.0	0.0	0.0	177.7	926.8	1,348.2
Secondary sector		132.5	115.4	107.6	163.9	197.5	194.7	182.6	220.7
	Manufacturing and handicrafts	110.9	92.4	84.7	115.4	125.5	122.0	117.5	143.3
	Water and electricity	5.7	6.2	6.0	6.7	7.9	7.0	7.1	9.2
	Construction and public works	14.2	15.3	14.9	18.2	20.7	24.3	27.8	31.4
	Oil sector ^2/	1.7	1.5	2.1	23.7	43.5	41.4	30.2	35.7
Tertiary sector		449.7	429.9	439.6	538.8	608.6	642.6	633.7	840.0
	Commerce and transport	259.0	232.6	233.6	292.9	343.0	349.0	360.5	423.9
	Public administration	98.4	110.6	117.8	140.0	151.9	171.6	184.3	208.3
	Services	90.3	84.7	83.7	102.9	108.7	122.4	46.9	257.8
Sum of value added		983.6	905.0	948.6	1,207.6	1,331.2	1,528.5	2,275.3	3,057.8
Duties and taxes on imports		45.7	39.9	37.5	45.4	54.1	53.9	56.9	53.4
GDP at market prices		1,029.3	944.9	986.1	1,253.0	1,385.3	1,582.4	2,332.2	3,111.2
Non-oil GDP at market prices		1,027.7	943.4	984.0	1,229.4	1,341.9	1,363.3	1,375.2	1,727.3
		(In percent of total)
Primary sector		39.0	38.1	40.7	40.3	37.9	43.7	62.6	64.2
	Agriculture	24.4	20.1	19.6	19.7	17.6	13.8	10.1	10.7
	Livestock	11.7	14.6	17.8	17.7	16.8	15.1	10.6	8.3
	Fishing and mining	2.9	3.3	3.3	2.9	3.5	3.5	2.1	1.9
Secondary sector		12.9	12.2	10.9	13.1	14.3	12.3	7.8	7.1
	Manufacturing and handicrafts	10.8	9.8	8.6	9.2	9.1	7.7	5.0	4.6
	Water and electricity	0.6	0.7	0.6	0.5	0.6	0.4	0.3	0.3
	Construction and public works	1.4	1.6	1.5	1.4	1.5	1.5	1.2	1.0
Tertiary sector		43.7	45.5	44.6	43.0	43.9	40.6	27.2	27.0
	Commerce and transport	25.2	24.6	23.7	23.4	24.8	22.1	15.5	13.6
	Public administration	9.6	11.7	11.9	11.2	11.0	10.8	7.9	6.7
	Services	8.8	9.0	8.5	8.2	7.8	7.7	2.0	8.3
Sum of value added		95.6	95.8	96.2	96.4	96.1	96.6	97.6	98.3
Duties and taxes on imports		4.4	4.2	3.8	3.6	3.9	3.4	2.4	1.7
GDP at market prices		100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
Non-oil GDP at market prices		99.8	99.8	99.8	98.1	96.9	86.2	59.0	55.5

Sources: Chadian authorities; and IMF staff estimates.

^{^1/}Includes oil production and transportation.

^{^2/}Includes investment of the oil sector related to the construction of the pipeline and explorations works.

Table 2.

Chad: Gross Domestic Product by Sector of Origin, 1998-2005

(At constant 1995 prices)

Sources: Chadian authorities; and IMF staff estimates.

^{^1/}Includes oil production and transportation.

^{^2/}Includes investment of the oil sector related to the construction of the pipeline and explorations works.

Table 2.

Chad: Gross Domestic Product by Sector of Origin, 1998-2005

(At constant 1995 prices)

		1998	1999	2000	2001	2002	2003	2004	2005
		(In billions of CFA francs)
Primary sector		311.8	301.4	293.8	323.7	321.8	427.2	778.2	818.5
	Agriculture	171.1	156.7	144.6	169.7	163.2	174.6	151.2	187.6
	Livestock	116.2	119.3	122.6	125.9	129.4	132.9	136.6	140.4
	Fishing and mining	24.5	25.4	26.6	28.1	29.2	30.9	30.9	34.2
	Oil sector ^1/	0.0	0.0	0.0	0.0	0.0	88.8	459.5	456.3
Secondary sector		118.6	111.7	109.9	125.5	155.8	159.3	147.1	172.8
	Manufacturing and handicrafts	99.9	91.1	89.5	85.8	97.0	97.9	91.9	107.2
	Water and electricity	5.4	6.0	5.7	6.3	7.3	6.3	6.2	8.1
	Construction and public works	11.9	13.3	12.9	14.5	16.6	20.4	23.5	26.9
	Oil sector ^2/	1.4	1.3	1.8	18.9	34.9	34.7	25.5	30.6
Tertiary sector		366.0	381.6	384.4	430.1	472.4	508.0	521.5	632.6
	Commerce and transport	209.8	210.0	211.1	238.9	268.1	274.7	292.1	314.2
	Public administration	76.0	91.1	94.3	101.9	108.9	128.6	143.8	160.6
	Services	80.2	80.5	79.0	89.3	95.4	104.7	85.6	157.8
Sum of value added		796.4	794.7	788.0	879.3	950.0	1094.5	1446.8	1623.9
Duties and taxes on imports		36.4	32.4	31.8	36.1	43.1	44.8	48.8	54.0
GDP at market prices		832.8	827.1	819.8	915.4	993.1	1139.3	1495.6	1677.9
Non-oil GDP at markets prices		831.4	825.8	818.0	896.5	958.2	1015.8	1010.6	1191.0
		(Annual changes in percent)
Primary sector		9.3	-3.3	-2.5	10.2	-0.6	32.8	82.2	5.2
	Agriculture	14.8	-8.4	-7.7	17.4	-3.8	7.0	-13.4	24.1
	Livestock	3.8	2.7	2.8	2.7	2.8	2.7	2.8	2.8
	Fishing and mining	1.7	3.7	4.7	5.6	3.9	5.8	0.0	10.7
Secondary sector		10.5	-5.8	-1.7	14.2	24.1	2.2	-7.7	17.5
	Manufacturing and handicrafts	11.5	-8.8	-1.8	-4.1	13.1	0.9	-6.2	16.7
	Water and electricity	2.6	11.1	-5.0	10.5	15.9	-13.7	-1.3	30.3
	Construction and public works	9.1	11.9	-3.4	12.8	14.5	22.9	15.2	14.5
	Oil sector	-12.5	-7.1	38.5	950.0	84.7	-0.6	-26.5	20.0
Tertiary sector		3.0	4.3	0.7	11.9	9.8	7.5	2.7	21.3
	Commerce and transport	5.5	0.1	0.5	13.2	12.2	2.5	6.3	7.6
	Public administration	-3.8	19.9	3.5	8.1	6.9	18.1	11.8	11.7
	Services	3.8	0.4	-1.9	13.1	6.9	9.8	-18.3	84.3
Sum of value added		6.5	-0.2	-0.8	11.6	8.0	15.2	32.2	12.2
Duties and taxes on imports		17.8	-11.0	-1.9	13.5	19.4	3.9	8.9	10.7
GDP at market prices		7.0	-0.7	-0.9	11.7	8.5	14.7	31.3	12.2
Non-oil GDP at market prices		7.0	-0.7	-0.9	9.6	6.9	6.0	-0.5	17.9

Sources: Chadian authorities; and IMF staff estimates.

^{^1/}Includes oil production and transportation.

^{^2/}Includes investment of the oil sector related to the construction of the pipeline and explorations works.

Table 2.

Chad: Gross Domestic Product by Sector of Origin, 1998-2005

(At constant 1995 prices)

		1998	1999	2000	2001	2002	2003	2004	2005
		(In billions of CFA francs)
Primary sector		311.8	301.4	293.8	323.7	321.8	427.2	778.2	818.5
	Agriculture	171.1	156.7	144.6	169.7	163.2	174.6	151.2	187.6
	Livestock	116.2	119.3	122.6	125.9	129.4	132.9	136.6	140.4
	Fishing and mining	24.5	25.4	26.6	28.1	29.2	30.9	30.9	34.2
	Oil sector ^1/	0.0	0.0	0.0	0.0	0.0	88.8	459.5	456.3
Secondary sector		118.6	111.7	109.9	125.5	155.8	159.3	147.1	172.8
	Manufacturing and handicrafts	99.9	91.1	89.5	85.8	97.0	97.9	91.9	107.2
	Water and electricity	5.4	6.0	5.7	6.3	7.3	6.3	6.2	8.1
	Construction and public works	11.9	13.3	12.9	14.5	16.6	20.4	23.5	26.9
	Oil sector ^2/	1.4	1.3	1.8	18.9	34.9	34.7	25.5	30.6
Tertiary sector		366.0	381.6	384.4	430.1	472.4	508.0	521.5	632.6
	Commerce and transport	209.8	210.0	211.1	238.9	268.1	274.7	292.1	314.2
	Public administration	76.0	91.1	94.3	101.9	108.9	128.6	143.8	160.6
	Services	80.2	80.5	79.0	89.3	95.4	104.7	85.6	157.8
Sum of value added		796.4	794.7	788.0	879.3	950.0	1094.5	1446.8	1623.9
Duties and taxes on imports		36.4	32.4	31.8	36.1	43.1	44.8	48.8	54.0
GDP at market prices		832.8	827.1	819.8	915.4	993.1	1139.3	1495.6	1677.9
Non-oil GDP at markets prices		831.4	825.8	818.0	896.5	958.2	1015.8	1010.6	1191.0
		(Annual changes in percent)
Primary sector		9.3	-3.3	-2.5	10.2	-0.6	32.8	82.2	5.2
	Agriculture	14.8	-8.4	-7.7	17.4	-3.8	7.0	-13.4	24.1
	Livestock	3.8	2.7	2.8	2.7	2.8	2.7	2.8	2.8
	Fishing and mining	1.7	3.7	4.7	5.6	3.9	5.8	0.0	10.7
Secondary sector		10.5	-5.8	-1.7	14.2	24.1	2.2	-7.7	17.5
	Manufacturing and handicrafts	11.5	-8.8	-1.8	-4.1	13.1	0.9	-6.2	16.7
	Water and electricity	2.6	11.1	-5.0	10.5	15.9	-13.7	-1.3	30.3
	Construction and public works	9.1	11.9	-3.4	12.8	14.5	22.9	15.2	14.5
	Oil sector	-12.5	-7.1	38.5	950.0	84.7	-0.6	-26.5	20.0
Tertiary sector		3.0	4.3	0.7	11.9	9.8	7.5	2.7	21.3
	Commerce and transport	5.5	0.1	0.5	13.2	12.2	2.5	6.3	7.6
	Public administration	-3.8	19.9	3.5	8.1	6.9	18.1	11.8	11.7
	Services	3.8	0.4	-1.9	13.1	6.9	9.8	-18.3	84.3
Sum of value added		6.5	-0.2	-0.8	11.6	8.0	15.2	32.2	12.2
Duties and taxes on imports		17.8	-11.0	-1.9	13.5	19.4	3.9	8.9	10.7
GDP at market prices		7.0	-0.7	-0.9	11.7	8.5	14.7	31.3	12.2
Non-oil GDP at market prices		7.0	-0.7	-0.9	9.6	6.9	6.0	-0.5	17.9

Sources: Chadian authorities; and IMF staff estimates.

^{^1/}Includes oil production and transportation.

^{^2/}Includes investment of the oil sector related to the construction of the pipeline and explorations works.

Table 3.

Chad: Supply and Use of Resources at Current Prices, 1998-2005

(In billions of CFA francs)

Sources: Chadian authorities; and IMF staff estimates.

Table 3.

Chad: Supply and Use of Resources at Current Prices, 1998-2005

(In billions of CFA francs)

						1998	1999	2000	2001	2002	2003	2004	2005
Supply of resources						1,348	1,249	1,328	1,811	2,696	2,237	3,049	3,765
	Gross domestic product					1,028	945	986	1,253	1,385	1,582	2,332	3,110
		Non-oil sector				1,026	943	984	1,229	1,342	1,363	1,375	1,676
	Imports of goods and services					320	304	342	558	1,311	654	717	654
		Non-oil sector				300	253	282	324	401	445	609	533
			Goods			160	112	111	144	197	244	354	315
			Services			140	142	172	180	204	201	255	218
		Oil sector				20	51	60	234	910	209	108	122
Use of resources
	Gross domestic expenditure
		Consumption				986	1,012	1,008	1,281	1,951	1,296	1,760	2,008
			Central government			57	65	76	94	107	121	114	140
			Private Sector			929	947	932	1,187	1,844	1,175	1,646	1,869
		Gross capital formation				174	129	230	504	833	829	566	627
			Gross fixed capital formation			145	160	207	458	827	773	530	591
				Central government		78	91	103	111	140	199	182	218
				Private sector		67	69	103	348	687	574	348	373
					Non-oil sector	16	53	49	60	80	75	84	102
					Oil sector	51	17	54	288	607	499	264	271
			Changes in inventories			29	-31	23	46	6	56	36	36
	Exports of goods and services					188	173	167	184	176	392	1,190	1,706
			Goods			152	140	130	138	129	350	1,142	1,639
				of which oil exports		0	0	0	0	0	137	936	1,415
			Services			36	33	36	45	47	41	48	66
Memorandum items:
	Gross domestic savings					42	-67	-22	-28	-565	286	572	1,102
	Resource gap					-132	-131	-175	-374	-1,135	-262	473	1,051
	Private transfers					14	6	5	14	23	15	42	33
	Official Transfers (current)					29	20	31	18	27	43	73	62
	Factor income (net)					-9	-1	-12	-17	-42	-265	-232	-543
	Gross national savings					76	-43	2	-12	-557	79	455	653

Sources: Chadian authorities; and IMF staff estimates.

Table 3.

Chad: Supply and Use of Resources at Current Prices, 1998-2005

(In billions of CFA francs)

						1998	1999	2000	2001	2002	2003	2004	2005
Supply of resources						1,348	1,249	1,328	1,811	2,696	2,237	3,049	3,765
	Gross domestic product					1,028	945	986	1,253	1,385	1,582	2,332	3,110
		Non-oil sector				1,026	943	984	1,229	1,342	1,363	1,375	1,676
	Imports of goods and services					320	304	342	558	1,311	654	717	654
		Non-oil sector				300	253	282	324	401	445	609	533
			Goods			160	112	111	144	197	244	354	315
			Services			140	142	172	180	204	201	255	218
		Oil sector				20	51	60	234	910	209	108	122
Use of resources
	Gross domestic expenditure
		Consumption				986	1,012	1,008	1,281	1,951	1,296	1,760	2,008
			Central government			57	65	76	94	107	121	114	140
			Private Sector			929	947	932	1,187	1,844	1,175	1,646	1,869
		Gross capital formation				174	129	230	504	833	829	566	627
			Gross fixed capital formation			145	160	207	458	827	773	530	591
				Central government		78	91	103	111	140	199	182	218
				Private sector		67	69	103	348	687	574	348	373
					Non-oil sector	16	53	49	60	80	75	84	102
					Oil sector	51	17	54	288	607	499	264	271
			Changes in inventories			29	-31	23	46	6	56	36	36
	Exports of goods and services					188	173	167	184	176	392	1,190	1,706
			Goods			152	140	130	138	129	350	1,142	1,639
				of which oil exports		0	0	0	0	0	137	936	1,415
			Services			36	33	36	45	47	41	48	66
Memorandum items:
	Gross domestic savings					42	-67	-22	-28	-565	286	572	1,102
	Resource gap					-132	-131	-175	-374	-1,135	-262	473	1,051
	Private transfers					14	6	5	14	23	15	42	33
	Official Transfers (current)					29	20	31	18	27	43	73	62
	Factor income (net)					-9	-1	-12	-17	-42	-265	-232	-543
	Gross national savings					76	-43	2	-12	-557	79	455	653

Sources: Chadian authorities; and IMF staff estimates.

Table 4.

Chad: Supply and Use of Resources at Current Prices, 1995-2005

(In percent of GDP)

Sources: Chadian authorities; and IMF staff estimates.

Table 4.

Chad: Supply and Use of Resources at Current Prices, 1995-2005

(In percent of GDP)

					1998	1999	2000	2001	2002	2003	2004	2005
Supply of resources					131.1	132.2	134.7	144.5	194.6	141.3	130.7	121.0
	Gross domestic product				100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
	Imports of goods and servic				31.1	32.2	34.7	44.5	94.6	41.3	30.7	21.0
		Goods			15.6	11.8	11.2	11.5	14.2	15.4	15.2	10.1
		Services			13.6	15.0	17.4	14.4	14.7	12.7	10.9	7.0
Use of resources
	Gross domestic expenditure
		Consumption			95.9	107.1	102.2	102.2	140.8	81.9	75.5	64.6
			Central government		5.5	6.9	7.7	7.5	7.7	7.6	4.9	4.5
			Private sector		90.4	100.2	94.5	94.7	133.1	74.3	70.6	60.1
		Gross capital formation			16.9	13.7	23.3	40.3	60.2	52.4	24.3	20.2
			Gross fixed capital fc		14.1	17.0	20.9	36.6	59.7	48.9	22.7	19.0
				Central government	7.6	9.6	10.5	8.8	10.1	12.5	7.8	7.0
				Private sector	6.5	7.4	10.5	27.8	49.6	36.3	14.9	12.0
		Changes in inventories			2.8	-3.3	2.3	3.7	0.4	3.5	1.5	1.2
	Exports of goods and serv				18.3	18.3	16.9	14.7	12.7	24.8	51.0	54.8
			Goods		14.8	14.8	13.2	11.0	9.3	22.1	49.0	52.7
			Services		3.5	3.5	3.7	3.6	3.4	2.6	2.0	2.1
Memorandum items:
	Gross domestic savings				4.1	-7.1	-2.2	-2.2	-40.8	18.1	24.5	35.4
	Resource gap				-12.8	-13.9	-17.8	-29.9	-81.9	-16.6	20.3	33.8
	Private transfers				1.4	0.6	0.5	1.1	1.7	0.9	1.8	1.0
	Official Transfers (current)				2.8	2.1	3.2	1.5	1.9	2.7	3.1	2.0
	Factor income				-0.9	-0.1	-1.3	-1.3	-3.0	-16.8	-9.9	-17.5
	Gross national savings				7.4	-4.5	0.2	-0.9	-40.2	5.0	19.5	21.0

Sources: Chadian authorities; and IMF staff estimates.

Table 4.

Chad: Supply and Use of Resources at Current Prices, 1995-2005

(In percent of GDP)

					1998	1999	2000	2001	2002	2003	2004	2005
Supply of resources					131.1	132.2	134.7	144.5	194.6	141.3	130.7	121.0
	Gross domestic product				100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
	Imports of goods and servic				31.1	32.2	34.7	44.5	94.6	41.3	30.7	21.0
		Goods			15.6	11.8	11.2	11.5	14.2	15.4	15.2	10.1
		Services			13.6	15.0	17.4	14.4	14.7	12.7	10.9	7.0
Use of resources
	Gross domestic expenditure
		Consumption			95.9	107.1	102.2	102.2	140.8	81.9	75.5	64.6
			Central government		5.5	6.9	7.7	7.5	7.7	7.6	4.9	4.5
			Private sector		90.4	100.2	94.5	94.7	133.1	74.3	70.6	60.1
		Gross capital formation			16.9	13.7	23.3	40.3	60.2	52.4	24.3	20.2
			Gross fixed capital fc		14.1	17.0	20.9	36.6	59.7	48.9	22.7	19.0
				Central government	7.6	9.6	10.5	8.8	10.1	12.5	7.8	7.0
				Private sector	6.5	7.4	10.5	27.8	49.6	36.3	14.9	12.0
		Changes in inventories			2.8	-3.3	2.3	3.7	0.4	3.5	1.5	1.2
	Exports of goods and serv				18.3	18.3	16.9	14.7	12.7	24.8	51.0	54.8
			Goods		14.8	14.8	13.2	11.0	9.3	22.1	49.0	52.7
			Services		3.5	3.5	3.7	3.6	3.4	2.6	2.0	2.1
Memorandum items:
	Gross domestic savings				4.1	-7.1	-2.2	-2.2	-40.8	18.1	24.5	35.4
	Resource gap				-12.8	-13.9	-17.8	-29.9	-81.9	-16.6	20.3	33.8
	Private transfers				1.4	0.6	0.5	1.1	1.7	0.9	1.8	1.0
	Official Transfers (current)				2.8	2.1	3.2	1.5	1.9	2.7	3.1	2.0
	Factor income				-0.9	-0.1	-1.3	-1.3	-3.0	-16.8	-9.9	-17.5
	Gross national savings				7.4	-4.5	0.2	-0.9	-40.2	5.0	19.5	21.0

Sources: Chadian authorities; and IMF staff estimates.

Table 5.

Chad: Consumer Price Index, 1997-June 2006

(January 1994 = 100)

Sources: Chadian authorities; and IMF staff estimates.

Table 5.

Chad: Consumer Price Index, 1997-June 2006

(January 1994 = 100)

		Local Products	Imported Products	Overall
Weights (in percent)		(77.0)	(23.0)	(100.0)
1997		166.1	180.1	169.3
1998		190.7	198.1	192.4
1999		174.4	180.8	175.9
2000		181.3	191.7	183.7
2001		207.1	204.9	206.6
2002		222.5	200.1	217.3
2003		219.1	195.0	213.5
2004		207.6	183.9	202.2
2004
	January	200.7	190.7	198.4
	February	199.1	191.9	197.4
	March	194.7	191.4	193.9
	April	201.7	187.2	198.4
	May	203.3	184.5	199.0
	June	204.8	179.7	199.0
	July	204.9	172.4	197.4
	August	212.1	182.8	205.4
	September	213.4	177.0	205.0
	October	224.6	181.6	214.7
	November	222.0	185.2	213.5
	December	210.2	182.7	203.9
2005
	January	216.7	182.7	208.9
	February	219.6	180.7	210.7
	March	222.9	178.0	212.6
	April	220.8	179.1	211.2
	May	231.0	177.2	218.6
	June	236.2	181.2	223.6
	July	239.9	177.8	225.6
	August	243.5	181.5	229.2
	September	245.6	186.5	232.0
	October	234.6	181.1	222.3
	November	226.5	179.9	215.8
	December	216.5	175.7	207.1
2006
	January	218.2	175.1	208.3
	February	212.4	174.5	203.7
	March	255.2	172.8	236.2
	April	256.8	178.6	238.8
	May	257.3	181.0	239.8
	June	268.0	176.1	246.9

Sources: Chadian authorities; and IMF staff estimates.

Table 5.

Chad: Consumer Price Index, 1997-June 2006

(January 1994 = 100)

		Local Products	Imported Products	Overall
Weights (in percent)		(77.0)	(23.0)	(100.0)
1997		166.1	180.1	169.3
1998		190.7	198.1	192.4
1999		174.4	180.8	175.9
2000		181.3	191.7	183.7
2001		207.1	204.9	206.6
2002		222.5	200.1	217.3
2003		219.1	195.0	213.5
2004		207.6	183.9	202.2
2004
	January	200.7	190.7	198.4
	February	199.1	191.9	197.4
	March	194.7	191.4	193.9
	April	201.7	187.2	198.4
	May	203.3	184.5	199.0
	June	204.8	179.7	199.0
	July	204.9	172.4	197.4
	August	212.1	182.8	205.4
	September	213.4	177.0	205.0
	October	224.6	181.6	214.7
	November	222.0	185.2	213.5
	December	210.2	182.7	203.9
2005
	January	216.7	182.7	208.9
	February	219.6	180.7	210.7
	March	222.9	178.0	212.6
	April	220.8	179.1	211.2
	May	231.0	177.2	218.6
	June	236.2	181.2	223.6
	July	239.9	177.8	225.6
	August	243.5	181.5	229.2
	September	245.6	186.5	232.0
	October	234.6	181.1	222.3
	November	226.5	179.9	215.8
	December	216.5	175.7	207.1
2006

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About

Resources

Abstract

VI. Chad’s Microfinance Sector: An Overview69

A. Introduction

B. Background

C. Saving Mobilization by MFIs

D. Weaknesses and Challenges of Chad’s Microfinance Sector

E. Conclusions and Recommendations

References

Chad: Summary of the Tax System - To be updated to end-2005

VI. Chad’s Microfinance Sector: An Overview⁶⁹