• Gabon lost $1.75 bn in tax exemptions over three years.
• New exemptions suspended, audit and reforms underway.
• Import tax relief targets food and housing costs.

Gabon has experienced a cumulative revenue shortfall exceeding 1,000 billion CFA francs, about $1.75 billion, over the past three years due to tax exemptions. The Council of Ministers announced this on Friday, June 20, 2025.

The Gabonese government attributed this loss to "massive and poorly regulated tax exemptions." The shortfall includes 682.67 billion CFA francs in domestic taxes and 376.55 billion CFA francs in border taxes. In response to these losses, which are weakening the national economy, the government has announced a series of measures. These measures aim to rationalize preferential tax regimes, restore fiscal equity, and safeguard public revenues.

New Tax Measures

Key decisions include the immediate and precautionary suspension of all new tax exemptions for a three-month period. A comprehensive audit of all special tax regimes currently in force will also be conducted. The audit's objective is to assess their relevance and actual economic impact. Simultaneously, the conditions for accessing these tax benefits will undergo a major overhaul.

According to the government, the aim is to eliminate ineffective privileges granted to certain sectors, often at the expense of public interest. This will also align fiscal tools with the country’s economic and social priorities.

Additionally, as part of efforts to combat the high cost of living, the Council of Ministers approved a six-month suspension of import duties and taxes on essential food products. This measure applies exclusively to economic operators approved under the "Agrément Vie Chère" framework. In the same spirit, Value Added Tax (VAT) has also been suspended on the production and sale of specific construction materials. This aims to reduce housing costs and ease the financial burden on households.

These measures come as Gabonese authorities work to improve public finances, sustain growth momentum, and enhance the country's appeal to investors.