• World Bank report highlights weak tax contribution from agriculture despite large exports

• Farm companies achieve only 2% of potential corporate tax revenue, versus 63% in industry

• Export duties on cocoa and cashew remain key revenue source, not profit taxation

Agriculture in Côte d’Ivoire is among the sectors that remain lightly taxed, alongside mining, trade, construction, and telecommunications, according to the World Bank’s latest economic report on the country. The study points to a sharp imbalance in tax collection.

Based on analysis from the CIRES economic policy unit (CAPEC), the report shows that farm companies contribute only 2% of their potential in corporate profit taxes, leaving a 98% gap between actual and potential tax revenue. By comparison, industry reaches 63% of its potential and services 80%. The shortfall is even larger in export agriculture, with just 1% effort for fishing and forestry products.

The World Bank notes that this gap stems from multiple factors, including preferential regimes and exemptions often granted for political or social reasons, administrative complexity, and the size of the informal economy. Reforms in tax administration and emerging economic changes have cut the informal sector’s share of GDP by nearly 10 points since the 2000s, to 38% in 2020. But the sector still employs over 80% of the workforce and remains a major barrier to broader tax collection.

Export duties remain key

This does not mean agriculture is tax-free. With agriculture representing 23% of GDP and two-thirds of exports, the sector still brings in revenue through export duties and parafiscal levies. Cocoa illustrates this. Côte d’Ivoire produced 1.76 million tons in 2023/2024, exporting 974,000 tons, according to the USDA. In 2023 alone, cocoa generated $3.6 billion in export earnings. Customs data show $692 million collected in export duties, or 19.2% of export revenues.

The World Bank has noted that Côte d’Ivoire taxes cocoa exports more heavily than other producers, with a combined rate of 22% in 2019. This translates into about 40% of a farmer’s turnover and over 50% of profits, making cocoa the most taxed activity in the country.

Other crops also contribute: in 2023, export duties brought in $59.2 million from cashew and $37.2 million from rubber. Overall, export duties and parafiscal charges drive more revenue in agriculture than corporate profit taxes. On VAT, the World Bank found relatively strong compliance: 62% for agriculture, 45% for food crops and livestock, and 72% for exports, though fraud levels reach 41%.

Major multinationals such as Cargill and Nestlé operate in Côte d’Ivoire, but the World Bank does not single out any company as responsible for low profit tax yields in export agriculture.

The report underscores a deeper policy choice. With strong export duties but weak direct taxation, Côte d’Ivoire has built a model that taxes trade flows more than net profits. With the tax-to-GDP ratio at 14%, six points below the WAEMU target, the country’s fiscal balance remains a subject for debate.