The value nearly doubles the tax revenues from 2015, the starting year of the Finance Ministry’s data series, compiled by the Bank of Cape Verde (BCV) and reviewed today.
During this 10-year period, tax collection only declined in 2020, when the COVID-19 pandemic caused a significant halt in the global economy, but has been growing since.
The final accounts for 2024 confirm a trend noted in the latest report from the International Monetary Fund (IMF), which had covered the first three quarters of the year.
“Economic activity and policy measures related to strengthening electronic invoicing and modernizing the collection of overdue taxes supported an increase in tax revenues,” the organization stated.
Concerning the economy, the figures also reflect “the continuous growth of the tourism sector, with higher service exports” and consequently “an increase in tax revenues, with a positive impact on debt sustainability,” it added.
The Value Added Tax (VAT), paid by consumers, accounts for 40% of Cape Verdean tax revenue, followed by income taxes (25%) and international transaction taxes (20%), all of which grew between 2023 and 2024.
Tax collection accounts for 81% of the central government’s revenues, according to the same data.
