Oligui Nguema announces 5% VAT on construction materials in 2026 amended finance law to combat high cost of living

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.