Burkina Fasos military government has ceased the tax privileges previously provided to France.This decision followed after French sanctions against Burkina Faso.The tax agreement, initiated in 1965 and later amended in 1967, 1971, and 1974, allowed French companies and citizens to pay taxes to France on earnings made in Burkina Faso, while simultaneously receiving several tax exemptions within Burkina Faso.The Burkina Faso government believes the agreement primarily benefited French multinational corporations operating in their nation, leading to significant revenue losses for them over the years.Presidential palace Burkina Faso.
(Photo Internet reproduction)By ending this agreement, Burkina Faso aims to increase its tax revenue significantly.This will mean that French individuals and companies will be liable to pay taxes to Burkina Faso on their income earned in the country.The termination of this contract will become effective within the next three months.The decision comes days after France suspended development aid and budgetary support to Burkina Faso due to the countrys backing of a military coup in Niger.Recent tensions in the West African region, including conflicts related to a military coup in Niger and responses from regional nations, have also played a part in the escalating situation.France announced a halt to its developmental aid and budgetary support to Burkina Faso, prompting the Burkina Faso military governments recent tax-related decision against France.