Mali : fiscal and regulatory reform impact assessment study

This report assesses the EPRP's regulatory and fiscal reform component. Efforts at regulatory reform have been in three areas. (1) The new Commercial Code - enactment of which was made a condition precedent to disbursement - has enabled economic agents to do business in a modern way and abolished the requirement that businesses be officially approved, resulting in a boom in formal business registrations. (2) Price ceilings and preset profit margins have been removed for all but 26 products/services, a number soon to be reduced to 10. (3) To complement price liberalization, foreign trade has been liberalized by reducing restrictions on exports and (especially) imports. What restrictions remain will be removed before the end of June, 1989. The overall result of regulatory reform has been to increase economic competition (to the benefit of consumers) and improve the business environment. In regard to fiscal reform, several initiatives have been undertaken - including reducing the rates for major taxes and realigning customs duties so as to increase incentives for local manufacturing. Overall, fiscal achievements, while insufficient, represented a courageous step toward economic liberalization. Recommendations are included for both the regulatory and fiscal areas.