Following the military coup in Niger, which was boldly supported by Mali, the two countries have taken one more step by simultaneously denouncing the double taxation agreements they had with France.
Both countries (Mali and Niger), came together and issued a joint statement, where they announced that they were denouncing their double taxation agreements with France. This is another step in their continuing unraveling of their ties with Paris and the tightening of both countries relationship. Some of the Nigerien citizens demonstrated their happiness at the announcement by burning copies of the CFA Franc.
In the statement, the governments of the two Sahelian countries cited “France’s persistent hostile attitude against our States” and “the unbalanced nature of these agreements, which cause a considerable loss of revenue for Mali and Niger”. They also announced that the agreements would expire soon. Would there be consequences for this action taken by Niger and Mali? No one knows for now, but according to history, Mali and Niger have been linked with Frances’ tax system since 1972 and 1965, respectively.
But, there has also been conventions “tending to avoid (“eliminate” for Niger) double taxation, and to establish rules of reciprocal assistance” in tax matters before now.
The agreements also cover personal and corporate income tax, inheritance tax, and registration duties.
It is interesting to note that there has been a lot of activities in Niger republic since the 2023 coup d etat. But this started since the military invasion of these countries in Mali, Niger, Bamako and Niamey all between 2022 and 2023. There is also Burkina Faso, which was also overtaken by the military, they too have already denounced the tax treaty with France, even before Mali and Niger.
The three countries have something in common, they are being threatened by Jihad extremists. They decided to come together and unanimously agreed with their foreign ministers to create a confederation.
Mali and Niger actually revoked two treaties that they have with France, the treaties are for cooperation and administrative assistance in tax matters.
Interestingly, the two West African countries are currently being run by military juntas that seized power in coups, with the support of their citizens. The countries have also been taking steps to distance themselves from their former colonial ruler, which is France. Before now, France was a very close partner in security with Mali and Niger, and other areas.
Part of the statement was the revoking of one agreement that Niger had with France from 1972, which was meant to avoid double taxation and “establish rules of reciprocal assistance” in various tax matters. The other agreement had similar aims.
“The persistent hostile attitude of France against our states… added to the unbalanced character of these agreements causing a considerable shortfall for Mali and Niger,” said the joint statement, which was shared by Mali’s foreign ministry on social media.
Needless to say, the announcement by the military junta duo of Mali and Niger caused a lot of uproar among their citizens and on social media, but till date, there has not been any formal response from France.
The military leaders of Mali and Niger, immediately after the announcement said that they would both scrap tax agreement with France, continuing an unravelling of ties with Paris, while tightening their own relations.
Through their joint statement, the two neighbouring West African nations noted that “France’s persistent hostile attitude towards our states”, and “the unbalanced nature of these agreements, which result in a considerable loss of revenue for Mali and Niger”.
The tax accords that they had with their former colonial ruler France, will end “within three months”, the military leaders of each country said.
The practical repercussions of the decision were not immediately clear, but the two countries seem resolute to face any immediate or future consequences their declaration may have.
The French tax authorities’ website stated that France has had agreements with Mali, since 1972, and Niger, since 1965, and those agreements were “aimed at avoiding (‘eliminating’ in the case of Niger) double taxation, and establishing rules for mutual assistance” in fiscal matters.
The decision by Mali and Niger, is the latest act of defiance towards France, since military forces seized power in Bamako in 2020 and in Niamey, in 2023.
Burkina Faso, is another Sahel country whose military took over in 2023, had already denounced its tax treaty with France as well.
The three African countries, which face similar problems including militia militants, formed an alliance in 2023 and their foreign ministers have recently proposed the creation of a confederation.
RSF, has been fighting with troops loyal to Sudanese army chief Abdel Fattah al-Burhan, since April 2022.
