GABON -New 2% tax on cash withdrawals from banking institutions

The 2% tax on bank withdrawals instituted by the government and contained in the amending finance law (LFR), should finally be adopted.

According to the Ministry of Economy, “Physical currency presents health risks highlighted by the Covid-19 pandemic. Economically, physical currency-based transactions are difficult to control and promotes the informal economy.”

The objective of this tax is therefore “to accelerate the change of users habits, by economically encouraging them to favor digital or traceable transactions (via cheque, bank transfer, payment cards or mobile money)”

Initially the bill on the 2% tax levied on bank withdrawals from 1 million was partially rejected on 24 June 2020 by the parliament.

Facing of the outcry caused by this proposal, the elected representatives of the people finally decided to increase the amount of levy: 5 million francs and no longer to 1 million francs as desired by the government.
In other words, any client or company that withdraws 5 million francs in cash from its bank will be taxed at 2%. That is 100,000 francs