Mali, Burkina Faso, Niger Introduce Joint Import Tax to Fund New Alliance
Mali, Burkina Faso, and Niger have implemented a 0.5% tax on imports to support their newly formed economic alliance after withdrawing from ECOWAS. The tax will fund the bloc’s activities, excluding humanitarian aid. This decision ends free trade in West Africa, reflecting the nations’ discontent with ECOWAS amidst rising violence linked to extremist groups.
Mali, Burkina Faso, and Niger, three neighboring nations in West Africa, have jointly initiated a new 0.5% import tax on foreign goods. This decision aims to facilitate financial resources for a new economic alliance after their departure from the broader regional group, as highlighted in an official statement.
The Alliance of Sahel States, formed in 2023 as a security pact among military leaders from these nations, has since developed into a prospective economic union. Plans for biometric passports and improved economic and military collaboration are being discussed.
The agreed-upon tax will take immediate effect and will encompass all imports from outside the three countries, although it excludes humanitarian aid. The collected revenue will support the bloc’s operational activities, but specific utilizations have not been detailed.
This new tax signifies the end of free trade in West Africa, an area traditionally governed by the Economic Community of West African States (ECOWAS). It highlights a significant divide between the three nations and democratic states such as Nigeria and Ghana to the south.
The three countries recently withdrew from ECOWAS, alleging that the organization had failed to address their challenges with armed groups and persistent insecurity. Despite ECOWAS imposing economic and political sanctions to encourage a return to constitutional governance, these initiatives have proven ineffective.
Mali, Burkina Faso, and Niger continue to endure violence from groups affiliated with al Qaeda and Daesh, which has led to extensive casualties, the displacement of millions, and a decline in public trust towards their democratically elected governments, which initially attempted to address the crisis.
The introduction of a 0.5% import tax by Mali, Burkina Faso, and Niger marks a significant transition towards a new economic alliance following their exit from ECOWAS. This tax aims to finance the activities of the new bloc while emphasizing the growing divide between these nations and other West African democracies. The persistent challenges of armed violence have yet to be resolved, further complicating the security landscape in the region.
Original Source: newscentral.africa
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