🇬🇦GabonCentral Africa
Oligui Nguema announces 5% VAT on construction materials in 2026 amended finance law to combat high cost of living
via Gabon Review5 min read
Gabon's President Oligui Nguema announced a 5% Value Added Tax VAT on construction materials, a measure to be included in the 2026 Amended Finance Law LFR. This decision aims to address the high cost of living, which the President acknowledged remains a significant burden for many citizens despite previous price capping measures. The reduced VAT will apply to essential construction materials such as cement, rebar, sheets, and tiles, directly benefiting households involved in building, renovating, or acquiring property. This 5% rate represents a middle ground, balancing the need to alleviate household expenses with the state's budgetary constraints. A previous total suspension of VAT on certain construction materials in 2025 was halted due to fiscal challenges. The 2026 Initial Finance Law LFI already introduced a 5% reduced rate on several basic food products and on construction work and tourism equipment representing a minimum investment of 300 million FCFA. The extension to common construction materials is intended to support middle and working-class populations. This fiscal adjustment is part of a broader budgetary effort, with the 2026 state budget of 6,358.2 billion CFA francs being constructed from scratch to ensure efficient spending. The President also highlighted the underutilization of a hotline for reporting abusive pricing, urging citizens to use it to help control market behaviors.
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This summary was AI-generated from a story originally published by Gabon Review.
Must ReadThe Reconciliation association and its partners report that nearly three out of four judicial cases in Gabon involve sexual abuse of minors or incest. During a belated celebration of the International Day of the African Child, the organization conducted an awareness campaign in Libreville's Kingélé district, urging parents and children to be vigilant against this issue. Founded in September 2023, the association chose Kingélé for its field action, highlighting a judicial reality often kept private. Claudine Aïsha Tsoumbou, president of the Reconciliation association, stated that 75% of court cases concern sexual abuse of minors or incest, emphasizing the urgency of addressing the problem, despite the lack of official public statistics. The campaign focused on parental responsibility, stressing that the danger often comes from within the child's trusted circle. Parents were encouraged to listen to their children and verify information, as silence and taboos empower abusers. Children were also taught age-appropriate responses to danger, such as refusing to go with an adult when parents are absent. The campaign also informed the public about existing institutional support, including the General Directorate for Youth Protection under the Ministry of Justice and the Directorate for Child and Women Protection within the Ministry of Social Affairs, to help victims and families know where to seek help.
Must ReadDuring his address to the Parliament on June 15, President Brice Clotaire Oligui Nguema initiated a discussion on mandatory electoral participation in Gabon. He emphasized the need to combat abstention to reinforce the legitimacy of elections, stating that this is an opportunity to consider legal provisions to make voting compulsory. This proposal is part of a broader effort to reform institutions and consolidate democracy, building on existing electoral modernizations and the organization of peaceful, free, and transparent elections. The President suggested that citizen participation should not be left solely to individual will, especially when it affects the democratic system's vitality. He mentioned the possibility of a more credible electoral register and the implementation of incentive or coercive mechanisms to ensure a more accurate representation of national aspirations. Observers note that this proposal reflects a broader vision of citizenship, linking it to the "republican obligation" and aiming to rebalance duties and rights in a rebuilding democracy. This initiative raises significant legal and societal questions, requiring collective adherence and guarantees of fairness in its application.
Must ReadDuring his State of the Nation address on June 15, President Brice Clotaire Oligui Nguema announced his intention to reduce state expenditures, particularly by lowering the payroll in the parapublic sector. He specifically targeted public enterprise executives, stating that greater equity should guide administrative reforms. The President emphasized that efforts to reduce state spending should not be limited to political institutions, noting that some general directors or their deputies in the parapublic sector earn more than ministers and parliamentarians. He declared that salary reductions in these sectors would promote better equity. This initiative seeks to rebalance public resource management, restore coherence at the state's highest levels, and address social expectations in a country marked by inequalities and purchasing power concerns. The government aims to control state costs and enhance the efficiency of public spending. President Oligui Nguema also mentioned other measures, such as the proposed elimination of transport allowances for civil servants with official vehicles. Conversely, he announced an increase in remuneration for Gabonese diplomatic representatives to improve their living conditions and enable them to achieve their objectives, citing previously degrading conditions for diplomatic and consular missions.