The Togolese Revenue Office (OTR) has announced that it collected a total of 258.06 billion CFA francs in tax revenue during the first quarter of 2025. This figure represents a 5.81 percent increase compared to the 243.89 billion CFA francs collected during the same period in 2024. The data was published by the Directorate General of Budget and Finance and reviewed by local financial news outlet Togo First.
Despite the positive growth, the amount collected between January and March 2025 only accounts for 21.36 percent of the government’s annual tax revenue target of 1,208.36 billion CFA francs. This means that the OTR must still collect nearly 950 billion CFA francs over the remaining three quarters of the year in order to meet its full-year objective.
A significant portion of the revenue growth recorded in the first quarter has been attributed to increased collections from corporate income tax (Impôt sur les Sociétés or IS). Revenue from corporate tax rose to 31.47 billion CFA francs, which is a 15.31 percent jump from the 27.30 billion CFA francs collected during the same period last year. Officials link this increase to an expansion of the national tax base, suggesting that more companies have been brought into the formal tax system.
Another key factor that contributed to the improved performance was the introduction of a new tax under the 2025 Finance Law. Known as the Tax on Telecommunications and Information Technology Companies (TETTIC), the levy is charged at a rate of 5 percent of the pre-tax turnover of telecom operators. The TETTIC tax yielded 1.30 billion CFA francs within just the first three months of its implementation, underscoring the potential of the telecoms sector as a reliable revenue source for the government.
Officials at the OTR also credited ongoing structural and policy reforms for the improved tax performance. These reforms include the implementation of the revised ECOWAS Common External Tariff (CET), which is now operational within the SYDONIA customs management system. Additionally, enhanced territorial surveillance and stronger tax and customs enforcement have contributed to tightening loopholes and boosting compliance among taxpayers.
The OTR’s performance in 2024 saw it mobilise 1,098 billion CFA francs in tax and customs revenue, just short of this year’s target. The upward revision of the revenue goal to 1,208.36 billion CFA francs for 2025 signals the government’s increased ambition to fund its public expenditure programme through internally generated resources.
In line with this, the Revenue Office has been stepping up its efforts to formalise the informal sector, digitalise its operations, and implement data-driven tax compliance systems. The authority has also been encouraging voluntary compliance through public awareness campaigns and enhanced taxpayer services.
For a country like Togo, which relies heavily on customs and domestic tax revenue to finance infrastructure, social services, and economic reforms, improvements in tax collection are crucial. However, experts say reaching the full-year target will depend on maintaining economic stability, improving enforcement, and continuing to modernise tax administration.
Analysts also note that new tax measures such as TETTIC, if properly monitored and expanded to cover other fast-growing sectors like digital commerce, could significantly boost revenue in the medium term. Still, the government is expected to balance its tax policies to avoid overburdening the private sector, which remains the engine of job creation and economic growth.
As the second quarter progresses, eyes will be on the OTR’s ability to sustain the current momentum and whether it will introduce further fiscal innovations to meet its ambitious target by December.
