Government of Gabon Suspends Import Duties to Ease Living Costs

The government of Gabon has suspended import duties, value-added tax and scanning fees on selected food products and construction materials for six months to ease rising living costs. The Ministry of Economy, Finance, Debt and State Holdings announced the measure.

The tax relief covers widely consumed food items including meat, poultry, fish, dairy products, canned goods, rice, pasta, cooking oils and sugar. In the construction sector, the government has lifted taxes on reinforcing steel, cement, gravel and sand, as these materials directly affect housing prices and rents. By targeting both food and building inputs, authorities aim to reduce pressure on household expenses.

The government has urged importers, wholesalers and retailers to reflect the reductions in final prices. It will conduct inspections to monitor compliance and has set up a toll-free hotline for consumers to report pricing abuses.

Inflation and Market Stabilisation Measures

The decision comes as inflation continues to weigh on purchasing power. Rising prices, supply constraints and speculative practices have pushed up the cost of essential goods in recent months. The Ministry of Economy’s latest sectoral report shows that Gabon’s average annual inflation reached 1.8% at the end of September 2025, compared with 1.4% a year earlier.

Alongside the temporary tax suspension, the government created a central purchasing agency in 2025 and plans to begin operations in April 2026. The agency will negotiate directly with international producers to import staple commodities such as rice and wheat, then distribute them to wholesalers at a fixed price to contain market fluctuations.

Fiscal Pressures and Revenue Impact

The tax suspension reduces state revenue at a time when public finances are already under strain. Gabon continues to face financial pressure linked to weaker performance in its extractive industries. Official figures show that oil production declined by 4.3% and natural gas output fell by 1.7% by the end of 2025.

Rising wage expenditures and increasing debt levels have further tightened the budget, with net liabilities climbing by 11.1% in a single quarter. In this environment, the government describes the temporary suspension as a significant fiscal effort to support households despite limited resources.