The modern tax system in the developing countries of Central Africa dates back to the colonial era but some historical sources say that the tax system existed in the pre-colonial period, since the simplest taxes were already used in all the francophone states of Central Africa.

In ancient Chad, taxes played an enormous role: they served the monarch. Later, during colonization, taxes were already in a different form.

If we turn to the actual practice of tax formation and its history, then the development of the Chadian tax system took place in three stages:

1) the feudal (traditional) taxation system – the so-called “system of contributions”;

2) metropolitan (French) taxation system, or metropolitan taxes;

3) modern taxation system.

To get a better look at the modern system of taxation in Chad, one must turn to its origins, so that “the tax not only has a historical aspect, it is also an element of the history of the people” Fournier de Flaix.

Traditional taxation system – According to historical sources, before the colonization of Chad by France, there were two tax systems in the country, which received the following names: the “traditional system of taxation” in the animistic part of the country and the other, the “tax system of the Islamic zone”, which had certain differences depending on the region of the country.

In southern Chad, where there was no political power, various tribes lived. At that time, there was no property law or tax system. It was a social coexistence of different groups of the population. They lived without any social hierarchy. They had no state or political organizations. But, as J. Ardant emphasized in the book “The Sociological Theory of the Variable Tax (import serpent)” published in 1965 in Paris, the tax performs different tasks for individual taxpayers in society as a whole.

Of course, in some areas where tribal leaders’ councils appeared, the population paid taxes in three forms:

1) Natural products in harvesting, hunting, fishing, and trade. It was done voluntarily in every village. Such taxes did not belong to either the king or the kingdom but were considered a sacrifice to God, a symbol of unity and peace.

2) Working off in the form of corvee. These taxes played not so much a fiscal as a significant social role. Taxes acted as a means of attracting the population to fieldwork, housing, and dam construction.

To pay taxes, residents of Chad had to be hired to work for wages. Labor for money has become a necessity. These taxes were direct, actual, and simple, at fixed rates.

3) In monetary form in the form of judicial and criminal fines, as well as in the provision of services. In this case, it was possible to accept taxes on products or work out a corvee as an equivalent to monetary forms.

Direct taxes, in turn, are subdivided into real and personal.

The real taxes in force in the Republic of Chad include income from real estate, tax on transactions with securities, etc. The wealthiest people shift a significant part of real taxes through rent to a worker. The severity of real taxes is especially great for the peasants. It should also be noted that the tax on securities does not yet play an important role due to the underdeveloped credit-monetary relations.

Personal direct taxes – taxes on income or property of individuals, levied at the source of income or on the declaration. Personal direct taxes are paid on the profit received and reflect the actual paying capacity of the population. These include personal income tax, property tax, inherited or donated, etc.

Indirect taxation of the Republic of Chad, the most significant is the income tax. It is levied on both citizens and enterprises (tax on wages, on non-commercial activities, on income from commercial and industrial activities, on income from movable and immovable property, civil tax, etc.). Income taxpayers in the country are merchants, handicraftsmen, artisans, private entrepreneurs, etc. Income tax is levied on taxpayers at annual rates ranging from 20 to 65%, depending on the size of their income and type of activity. The tax rate also depends on the marital status of the payer (single, married, widowed), etc. Here income is divided into parts according to the number of family members. A progressive scale is applied to each section, after which the tax amount is determined. In general, for a family, such a tax calculation system is quite complicated and practically makes it hard to apply tax returns. Workers and employees of relatively large companies are better versed in this.

One of the most crucial features of the tax system of the Republic of Chad is the prevalence of indirect taxes levied on entertainment, transport, and consumer services. Indirect taxes also include fiscal tax monopolies and customs duties. They make up a significant share of budget revenues.

The Chadian tax system also provides for local (communal) taxes, which are paid by individuals and legal entities and go to local authorities. These taxes are varied. The modern system of local taxes consists of several main types of taxes, as well as additional duties levied in favor of several government agencies and some organizations (chambers of commerce and industry, chambers of crafts, agricultural chambers, etc.)