News Finances

Gabon Suspends Taxes on Essential Goods to Curb Living Costs

Gabon Suspends Taxes on Essential Goods to Curb Living Costs
Monday, 16 February 2026 12:38
  • Gabon suspended import duties, VAT, and scanning fees on essential goods for six months to curb living costs.

  • The government targeted food staples and construction materials to protect purchasing power and limit housing cost pressures.

  • The measure added strain to public finances, already weakened by falling oil and gas output and rising debt.

Against a backdrop of persistent price increases, the Gabonese authorities approved a temporary fiscal relief package covering key consumer goods.

The government suspended for six months “the collection of import duties and taxes, value-added tax, and scanning fees on food products and certain construction materials,” according to a statement from the Ministry of Economy, Finance, Debt and State Holdings, which oversees the fight against high living costs.

The measure covered widely consumed food products, including meat, poultry, fish, dairy products, canned foods, rice, pasta, cooking oils, and sugar.
In the construction sector, the government also suspended taxes on reinforcing steel, cement, gravel, and sand to limit cost increases and their impact on housing prices and rents.

To ensure the effectiveness of the measure, the authorities urged importers, wholesalers, and retailers to pass cost reductions on to final prices.
The government announced inspections and provided a toll-free hotline for consumers to report abuses.

Persistent Inflationary Pressures

This decision came amid persistent inflation driven by rising prices, limited market supply, and speculative practices affecting essential goods.
According to the latest sectoral economic report from the Ministry of Economy, Gabon’s average annual inflation reached 1.8% at the end of September 2025, compared with 1.4% a year earlier.

To curb price increases, the government created a central purchasing agency in 2025, with operations scheduled to begin in April 2026.
The agency will stabilize prices of everyday consumer goods by negotiating directly with international producers to import rice, wheat, and other staples for distribution to wholesalers at a single fixed price.

However, the tax suspension created a significant revenue shortfall for public finances. Gabon has faced financial difficulties for several years, notably due to a slowdown in key extractive sectors such as oil and natural gas.

According to the Ministry of Economy, oil production fell by 4.3% and natural gas output declined by 1.7% at the end of 2025. Meanwhile, rising wage bills and debt levels further weakened the budget, with net liabilities increasing by 11.1% in a single quarter.

In this broader economic slowdown, the government described the temporary loss of tax revenue as a “substantial budgetary effort.”

Sandrine Gaingne

 

 
On the same topic
CEMAC prices fall 0.4% in Q4 2025, ending five-year rise Inflation stood at 2.8%, below region’s 3% threshold Sharpest price declines recorded in...
International Finance Corporation approved a senior loan of up to €50 million ($58 million) to Société Générale Sénégal to expand financing for...
Persistent launched the $70 million Persistent Africa Climate Venture Builder Fund (Persistent ACV Fund) to finance African climate...
Fund targets office, logistics, industrial, mixed-use projects in urban hubs First investment: office development site in Casablanca’s Casa-Anfa...
Most Read
01

The BCEAO cut its main policy rate by 25 basis points to 3.00%, effective March 16. Inflation...

BCEAO Cuts Key Rate to 3.00% as WAEMU Faces Deflation
02

Ethio Telecom has signed a new agreement with Ericsson to expand and modernize its telecom netwo...

Ethiopia’s State-Owned Telco Teams Up With Ericsson to Expand and Upgrade Its Network
03

EIB commits over €1 billion for renewable energy in sub-Saharan Africa Funding supports Miss...

EIB Commits €1 Billion to Renewable Energy Under Africa’s “Mission 300” Initiative
04

MTN Zambia tests Starlink satellite service connecting phones directly from space Direct-to...

Satellite direct-to-device telecoms: promise, momentum and hard limits
05

Nigeria introduced a 1% flat tax on the turnover of informal-sector businesses under a new presump...

Nigeria Rolls Out 1% Tax on Informal Businesses Under New Fiscal Framework
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.