In a report published on March 5, the French Audit Office (Cour des Comptes) recommends an in-depth overhaul of dock dues, a tax on imported products specific to the French overseas departments and regions, which it deems to be "out of breath". The system expires in 2027. 

In a report published on March 5, the French Audit Office (Cour des Comptes) states that "the time has come for a thorough reform of a tax system that has run out of steam in many respects, and no longer meets the structural challenges facing overseas France".

Initially designed to protect local production, dock dues have become an essential support for the finances of the French overseas territories. But this tax is also often blamed for the high cost of living.

Excessive complexity

Pursuing "too many objectives simultaneously", according to the Court, dock dues "therefore suffer from serious problems of coherence and efficiency" and are "excessively complex in relation to the revenue collected".

The financial institution believes that the system locks in overseas economies, citing "long-term protectionism, limiting competition and innovation, and preserving vested interests".

Three scenarios, 12 recommendations

The Rue Cambon considers three scenarios for the future of the tax, including a status quo that "seems to have to be ruled out" and a "breakthrough scenario" imagining the abolition of dock dues as early as 2027.

The preferred scenario, known as the "reformist scenario", "must not be limited to a few scattered measures", say the authors of the report, which makes 12 recommendations. Among these, in addition to measures to tighten controls, they recommend reducing the number of rates, currently ranging from 7 to 16 depending on the Drom.

Mitigating the effects of dock dues on prices

The Cour des Comptes also hopes that local authorities will devote more of this resource to investment, whereas today it is mainly used to finance their operating expenses.

Finally, to mitigate its impact on prices - the main criticism - she recommends capping it for essential products and excluding from the scheme those for which there is a local monopoly or, on the contrary, very little local production.

The Court concludes that "the scheme's expiry in 2027 gives the necessary time for a calm and concerted evolution", and that it benefits from a regularly renewed European agreement.

It remains to convince territories where "most elected representatives are very attached to it". In 2022, the "breathless" tax generated €1.64 billion in revenue for the five Droms (Guadeloupe, French Guiana, Martinique, Mayotte and La Réunion) that levy it, contributing 32% of the resources of communes.

La rédaction (avec l’AFP)