Fada N’Gourma Livestock Market Boycott Over Tax Hike

FADA N’GOURMA – Livestock exporters and importers boycotted the Fada N’Gourma market on Sunday in response to an increased market access tax for large ruminants, escalating from 1,000 to 2,600 FCFA.

According to Burkina Information Agency, the head of livestock loading in Fada N’Gourma, the special municipal delegation of the city held its first extraordinary session on October 18, 2023, where they passed a resolution to implement new taxation at the livestock market. The resolution, intended to widen the city’s tax base, did not receive the approval of the market’s main stakeholders.

The decision to boycott comes after exporters and importers made attempts to engage with municipal authorities, requesting a reconsideration of the new tax rates in light of current economic challenges. Thiombiano disclosed that the notification of the tax’s implementation was received only the day before it took effect, leaving no room for negotiation.

He further highlighted that the increased tax burden comes at a time when many displaced individuals depend on the sale of livestock as a vital source of income. Thiombiano and his peers are not opposed to the tax per se but argue that the timing and amount are inconsiderate given the already dire circumstances of the sellers.

Supporting Thiombiano’s views, livestock market broker Issouf Yonli pointed out the sharp increase in the tax levied on a large ruminant, which now stands at 2,600 CFA francs, a significant jump from the previous 1,000 CFA francs. Yonli emphasized the difficulties their trade has been experiencing lately, suggesting that the new tax rates exacerbate their predicament.

Contrastingly, a press release from the special delegation dated November 3, 2023, mentioned that the parking and boarding fees for large ruminants were set at 1,000 FCFA, or 500 FCFA per act, possibly indicating a miscommunication or a different interpretation of the fees.

The updated tax rates affect a range of livestock categories, including large ruminants (cattle), small ruminants, pigs, and poultry, and have now become a subject of contention within the Fada N’Gourma community.

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