In Senegal, satellite images to better collect property tax

It's difficult to put your house in an offshore account or hide it from the tax authorities. This is precisely why authorities in developing countries are taking a close interest in property tax. "Real estate cannot be hidden from the tax authorities, which makes it an ideal tax," summarizes Bassirou Sarr, chief of staff of the Senegalese Ministry of Finance and Budget.

With debt representing nearly 119% of its gross domestic product (GDP), according to Barclays Bank estimates, Africa's most indebted country urgently needs to increase its tax revenues. Property tax revenues have significant potential. In Senegal, they provide only 0.3% of government revenues, compared to 2% in sub-Saharan Africa and around 6% in member states of the Organization for Economic Co-operation and Development (OECD). As in other developing countries, the authorities prioritized taxes on large companies, SMEs, and finally taxpayers employed in the formal sector, which are easier to collect.

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