Subnational payments: Senegal

Senegal´s 2013 EITI Report shows challenges with record keeping by subnational governments. 

In Senegal, mining companies are required to make certain payments directly to local governments in the areas where they operate. These payments include land levies, minimum tax and local company tax. Sometimes companies are also required to contribute to local associations at mine-affected sites, and to an equalisation and support fund. Although the payments are minor – amounting only to USD 3 million in 2013 – they may make an important contribution to local communities. The EITI Report also revealed that the General Directorate of Public Accounting and Treasury is facing challenges in monitoring payments made by companies to local governments because payment records, including the identity of the taxpayer, are all paper based and only available at local government offices.

The 2013 EITI Report recommended that in order to monitor collection of public revenues by local governments, the Ministry of Economy and Finance should consider providing the General Directorate of Public Accounting and Treasury with an online reporting tool that would enable it to monitor, in real time, the transactions that have been effectuated including the identity of the tax payer across the territory.

The government and Senegal´s multi-stakeholder group has not yet had an opportunity to follow up on this recommendation.