Benin - Taxation
Indirect taxes provide almost 60% of government revenues, and direct taxes, about 25%. The corporate tax rate had been reduced to 35% from 38% in 2003. The top marginal rate for personal income tax was reported to have increased to 60% in 2003, from 35%, although the marginal rate for the average taxpayer was 6%.
A value-added tax (VAT) with a standard rate of 18% was introduced in 1991. In 2003, an estimated three-fourths of VAT collected was collected on imports, despite the fact that most imports, including those pursuant to all government contracts and most investments, are exempt from VAT.