Renégociation des contrats : Alla Sène Guèye plaide pour un dialogue constructif
The renegotiation of contracts and agreements announced by the Prime Minister continues to raise debates in the private sector.
According to the president of the National Federation of Industries of Senegal (FNIS), Alla Sène Guèye, this decision was "predictable" in view of the evolution of tax expenditures, in a context of budgetary tensions.
"This is a subject that must be treated with great care, because it affects the attractiveness of industries, but also state revenues," he said this Sunday during the program "Point de vue" on RTS.
Mr. Guèye pointed out that tax exemptions are a classic lever of economic policy designed to support investment.
According to him, the figures contained in the tax expenditure reports illustrate the extent of the advantages granted to certain sectors, particularly extractive industries.
According to the data he cites, in 2022, Senegal had 333 tax expenditure measures, 189 of which fell under general law and 144 under special regimes. Of the measures evaluated, more than half of the tax benefits (51.4%) accrued to businesses.
Mr. Guèye indicated that the extractive industries, which occupy a particularly important place in these systems, represented 53.5% of tax expenditures, or 431 billion CFA francs out of a total of 804 billion CFA francs in 2022, specifying that their share amounted to 41%, for 390 billion CFA francs the previous year.
"These figures show that the State has strongly supported this sector in recent years. It must be recognized that the measure is justified," he said, while stressing that these exemptions were by nature temporary.
Recalling the economic logic behind these mechanisms, Alla Sène Guèye argues that the State can forgo part of its tax revenue for a few years to allow an activity to develop and then generate income.
However, recognizing the concerns expressed by some manufacturers, particularly cement manufacturers, the president of the FNIS asserts that the situation should not lead to a confrontation.
“It’s not in the industrialists’ interest to engage in a power struggle with the government,” he said, advocating for consultations to find balanced solutions. He explained that the sector’s competitiveness can be strengthened by levers other than tax breaks, citing gas, logistics, and innovation as key drivers of competitiveness.
Finally, Alla Sène Guèye stressed that the renegotiation of agreements must be part of a comprehensive approach that reconciles budgetary rigor, dialogue with industrialists and strengthening the competitiveness of the sector.
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