Burkina Faso unifies gambling tax rate in 2025 Budget approval

On December 24, 2024, Burkina Faso's Finance Law for the 2025 financial year was approved by the National Assembly. During the session, Dr. Aboubakar Nacanabo, the Minister of the Economy, outlined the strategic priorities embedded in the new budget.

According to l'Economiste du Faso, one of the key highlights of the law is the proposed expansion of the gambling tax framework. The current provisions under Article 348 of the General Tax Code (CGI) differentiate between games monopolized by the Burkinabe National Lottery (LONAB), which incur a stamp duty of 5%, and other games of chance that are subject to a gambling tax. To streamline taxation, the amendment aims to unify these categories by applying a consistent gambling tax rate of 5% across all games of chance, thereby repealing Article 517 of the CGI.

Additionally, certain revenue streams from LONAB's operations, including betting tickets from live racing areas and specific lottery games, are currently exempt from taxation. In recent years, this segment has generated significant turnover—44.5 billion FCFA in 2019, rising to over 64.6 billion FCFA in 2021. The proposed changes are expected to broaden the tax base significantly.

The law also addresses VAT exemptions related to games of chance. While paragraph 18 of Article 307 exempts these transactions from VAT if they are already taxed under the gambling tax, a conflict arises as Article 348 suggests that LONAB's monopoly games are subject to VAT. The new amendment seeks to clarify this inconsistency by ensuring that all games of chance subject to other taxes will be exempt from VAT.

These legislative changes reflect Burkina Faso's commitment to enhancing fiscal policy and ensuring a more equitable taxation system across various gaming activities.