Key Highlights
• Ivory Coast ends TSDAR, a petroleum tax introduced in 2018 to reduce SIR’s debt.
• Government to redirect two-thirds of revenue to electricity sector via new tax starting July 1.
• Reform aims to support power grid upgrades and improve public service efficiency.

Ivory Coast has scrapped a key petroleum tax used to pay down the debt of its national oil refinery, the government said on June 18. The Tax for the Support of Refining Activity Development (TSDAR) will be discontinued, following the financial recovery of the Ivorian Refining Company (SIR).

The Council of Ministers approved two ordinances, one abolishing the tax and another modifying Article 411 of the General Tax Code to reflect the reform. The move follows a government assessment that SIR’s debt would be fully repaid by June 2025, fulfilling the tax’s original purpose.

Introduced in 2018, the TSDAR was levied on petroleum products as a temporary measure to restore the refinery’s financial health. Officials now say the mission is complete.

Starting July 1, 2025, about two-thirds of the TSDAR’s revenue will be redirected toward the electricity sector under a new levy called the Single Specific Tax (TSU). The government aims to raise nearly CFA50 billion ($87.8 million) to fund energy infrastructure, including the “Electricity for All” program.

Ivory Coast’s power grid has been under strain, with frequent blackouts caused by rising consumption, drought-related shortfalls, and technical failures in transmission.

The government says the tax shift reflects a broader strategy to reallocate budget priorities and improve the efficiency of public resource use amid rising utility demands.

This article was initially published in French by Ingrid Haffiny (Intern)

Edited in English by Ange Jason Quenum