By Alpha Jallow in Dakar, Senegal
In Senegal, households are beginning to feel the strain of the government’s new tax measures, which threaten to further weaken their purchasing power. Several companies across the country have started implementing additional charges on payments as part of the revised fiscal policy aimed at generating an extra 762 billion CFA francs in revenue this year.
The Auchan Group, one of Senegal’s largest retail chains, has announced that, in line with the revised General Tax Code, a 1% stamp duty will now apply to all cash payments, regardless of the amount. The company clarified that this duty is collected on behalf of the state and paid directly to the Public Treasury.
Following suit, the National Water Company (SEN’EAU) also confirmed that a 1% stamp duty would be levied on all cash payments. This measure, effective since October 4, 2025, is based on Law No. 2025-17 of September 27, 2025, which formalized the introduction of the new tax.
The revised law relating to the General Tax Code extends the 1% stamp duty to all cash transactions without any minimum or maximum limit. It also introduces a 0.5% tax on mobile money transactions (capped at 2,000 CFA francs) above a specified threshold and imposes a 20% withholding tax on winnings from gaming operators. These measures form part of Senegal’s Economic and Social Recovery Plan (PRES), aimed at boosting domestic revenue and strengthening the national economy.
Meanwhile, Canal+ has announced an increase of about 10% in its subscription prices. This follows the renegotiation of the company’s license fee with the state, which rose from a fixed 75 million CFA francs to 9% of its annual turnover, approximately 4.5 billion CFA francs in 2024.
According to government estimates, Senegal’s revenues are projected to reach 6,188.8 billion CFA francs in 2026, compared to 5,014.3 billion CFA francs in the 2025 finance law, an increase of 1,174.5 billion CFA francs, or 23.4% in relative terms.
However, while the government pursues its revenue goals, many citizens fear that these new taxes will make daily life even more difficult, particularly for low- and middle-income households already struggling with the rising cost of living.
SENEGAL: First Social Repercussions of the New Tax Policy
