Congo: DRC Reverses Tax Directive on M23 Areas Following Public Outcry

The Congolese government revoked a tax directive on goods from M23-controlled areas following public outcry. The DGDA described an earlier memo as a “forgery” and asserted that legislation applies throughout the country. The move aimed to recover lost revenue but led to widespread criticism and raised concerns over national cohesion and economic stability.

The Congolese government has reversed a controversial tax directive concerning goods originating from areas controlled by the M23 rebel group due to significant public outcry. On Wednesday, the North Kivu General Directorate of Customs and Excise announced its decision to no longer classify imports from Goma, Bunagana, and Ishasha as taxable items.

Jean-Louis Bauna, deputy director-general of customs, labeled a prior communication regarding the tax as a “forgery,” asserting that customs legislation remains fully applicable across the national territory. The directive, which received backlash on social media, had been shared with neighboring countries, including Uganda and Tanzania, prompting concerns over national cohesion.

The authorities, currently operating from Beni since M23’s takeover of Goma, initially sought to impose taxes on goods from the M23 zone to recover lost revenues. Paul Kayembe, the director of the North Kivu DGDA, denied any consideration of taxing the M23 zone, attributing the directive to deceptive influences and “Rwandan” manipulation.

Following widespread condemnation from notable Congolese figures who protested against the customs duty, the DGDA reaffirmed its commitment to adhere to national laws. Reports indicate the new tax memo had authenticity, with customs posts in rebel-controlled areas being excluded from the computerized customs system that manages procedures. The ongoing conflict has severely disrupted the region’s economy; for instance, the banking system in Goma has collapsed, significantly impacting residents who now rely on Rwanda for banking services.

In conclusion, the Congolese government has retracted its tax directive on goods from M23-controlled areas following public backlash. The decision underscores the complexities of governance in conflict zones and highlights the challenges the Congolese authorities face in maintaining economic stability amidst ongoing tensions. The reversal reflects both public sentiment and practical considerations regarding national unity and economic viability.

Original Source: www.zawya.com

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