Ouagadougou: The Minister of Economy and Finance, Dr. Aboubacar Nacanabo, announced a new tax initiative targeting undeveloped plots as part of the 2025 Amending Finance Act. This measure aims to stimulate land use and address the issue of land speculation, a significant factor in the rising cost of land in Burkina Faso.
According to Burkina Information Agency, Dr. Nacanabo emphasized that the state's primary goal is not revenue collection but the discouragement of land speculation. During an interview on RTB's 8 p.m. news, he stated that the intention is for all undeveloped plots to be utilized effectively. The minister highlighted that while the current system allows for the reclamation of plots after five years without development, this could lead to widespread plot withdrawals. The new tax serves as an alternative, offering owners a "second chance" before potential reclamation.
The tax will see an annual increase of 20%, designed to motivate landowners to develop their plots. Exemptions apply to disputed plots, those with initiated construction or secured bank financing (with a one-year extension), plots owned by certified indigent persons, and those belonging to minor heirs.
Dr. Nacanabo believes this reform will contribute to reducing land prices and preserving areas for agriculture and future generations. Additionally, the 2025 Amending Finance Act includes various tax incentives, such as VAT exemptions on fish feed and juices from local produce, and a 10% reduction in the withholding tax rate for transporters operating internationally.