The IMF Country Report No 15/2 issued in January 2015 concerned the annual bilateral discussions with Senegal and includes a staff report by the IMF team and a debt sustainability analysis. The IMF notes that Senegal is committed to implementing the Plan Sénégal Emergent (PSE) aiming to increase growth and reduce poverty. In the view of the IMF economic growth could reach seven percent by 2019 if the reforms are implemented quickly and consistently. The Senegal government considers that this target can be reached two years earlier.

The Plan Sénégal Emergent aims to increase economic growth through structural reforms; foster social security and human development; and improve governance and security. The structural reforms are aimed at increasing the level of foreign direct investment in the country and increasing the level of savings among the population to make possible higher public investment in human resources and infrastructure.

To increase government revenue Senegal is continuing to work to reduce tax arrears and VAT credits and is expecting to recover substantial amounts of tax from previous years. The revised budget passed in October 2014 provided for a rise in income tax and tax on telecommunications with effect from 1 January 2015. The government has begun studies to look at the feasibility of introducing new financial and environmental taxes.

The IMF is encouraging Senegal to quickly engage in wide regulatory reforms to attract investment from foreign companies who may currently be hesitating owing to the need for reform. 2015 is seen by Senegal as a year of turning planning into action. Revenue from taxes is expected to be stronger in 2015 owing to the effects of the new Tax Code and the effect of higher economic growth, combined with the collection of tax arrears in relation to earlier years. Senegal is also aiming to strengthen tax and customs administration and to rationalize the tax on the financial sector and communications.

The IMF report sets out additional fiscal measures that could be implemented in 2015. The IMF considers that Senegal should begin using the Single Taxpayer Identification Number (NINEA) for checking and enforcing taxes including customs. Senegal should consider introducing rewards or penalties to increase the use by taxpayers of the NINEA.

The IMF also suggests that a team should be given the task of monitoring the effect of tax policy reforms that have already been approved and where they are not having sufficient effect on revenue collection corrective measures should be recommended. In the opinion of the IMF at least 50% of the unpaid taxes from previous years should be collected in 2015.

Other measures recommended by the IMF to improve the business climate in Senegal include a reduction of the minimum capital requirement for forming a company; reduction of the time required to obtain a construction permit; and implementation of tighter regulations for licensing and operation of credit bureaus so that the credit information system is improved. Minority investors in a company should be protected by greater disclosure requirements for related party transactions to the board of directors and ability to inspect relevant documents.

Other tax recommendations by the IMF include the replacement of the requirement for authorization of a company by the tax authority with a notification requirement; abolition of the vehicle tax; and a facility to download declaration forms for VAT online to simplify the payment process.