June 7 (Bloomberg) -- Democratic Republic of Congo’s formal and informal taxes are limiting economic growth and the development of business, the World Bank said.
Taxes levied by state officials against smaller companies have “paralyzed” private-sector development and contributed to unemployment, the Washington D.C.-based development bank said in a report released today in Kinshasa, the capital.
“There has been no growth in employment” among small and medium-sized businesses between 2006 and 2010, according to the report on Congo’s economy. Companies employing more than 100 people with the clout to fight the taxes have fared better, “but as these businesses aren’t numerous, it hasn’t had a significant impact on employment.”
Poverty, which is still “omnipresent,” has been reduced in recent years by improvements in agriculture and macroeconomic stability, it said. Reforms to regulate state agencies, make trade more efficient and strengthen the judicial system will all help to increase growth and employment in the coming years, the report said.
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