The Democratic Republic of Congo (DRC) has introduced an ‘entry tax’ on goods coming from areas controlled by the M23 rebel group.
This move, announced by the North Kivu Directorate of Customs and Duty (DGDA), aims to counter revenue losses from territories under rebel control.
Taxation on Goods from M23 Strongholds
According to the DGDA’s directive, all goods originating from M23-occupied regions will be treated as new imports and taxed accordingly. The affected areas include Goma-Ville, Goma-Aéro, Bunagana, and Ishasha.
“Until further notice, all goods from these locations will be considered as foreign imports and subjected to standard customs procedures,” the DGDA stated.
Economic and Political Implications
The taxation policy has sparked debates in Kinshasa, with critics warning it could deepen divisions and accelerate the region’s fragmentation.
The decision follows reports that M23 rebels were independently collecting duties on goods, leading to significant revenue losses for the Congolese government.
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Impact on Trade and Regional Relations
Uganda, a key trading partner of the DRC, has also responded to the situation. The Uganda Revenue Authority (URA) has instructed traders to avoid M23-controlled border posts, such as Katuna, Bunagana, Cyanika, Ishasa River, Busanza, and Kyeshero.
“To mitigate revenue loss, traders are advised to use alternative border crossings until the political situation stabilizes,” URA stated in a notice.
Parallel Governance and Economic Disruptions
Following the rebel occupation of Goma and other key cities, the M23 group has established its own administration. The parallel government has introduced policies such as extending border business hours with Rwanda until 10 p.m., easing trade restrictions.
However, the economic impact has been severe. The Central Bank’s provincial branch and commercial banks in Goma have shut down, creating a liquidity crisis. Financial transactions remain under Kinshasa’s control, further straining the region’s economy.
Uncertain Future for North Kivu
While the Congolese government is attempting to reclaim lost territories, North Kivu remains divided. Major General Evariste Somo Kakule, the official governor appointed by Kinshasa, is working to reorganize state operations in areas still under government control.
The evolving situation in eastern DRC continues to pose significant economic and security challenges, with tax enforcement emerging as a critical tool in the broader conflict.
