Law advisory body rejects taxation move

The Central African Republic's law advisory body, the National Transition Council, has rejected the authorisation by the country's leader, Francois Bozize, of tax collection in February, pending the adoption of the 2004 budget. Terming Bozize's decision "serious and flagrant violation" of the constitutional acts instituted after his 15 March 2003 coup to replace the country's dissolved constitution, the council said it had not been consulted prior to the directive. In a statement, council Speaker Nicolas Tiangaye said on Thursday that the council's executive board had disapproved of the government's authorisation of tax and duty collection between 1 and 29 February. Bozize made the tax authorisation on Thursday, stating that due to on-going talks with the IMF and the World Bank, the country's 2004 budget could not be adopted in February. Under the constitutional acts instituted after Bozize’s coup, Tiangaye said, the government should consult the council before taking any major decision. He added that the tax directive was a proof of "little respect paid [by the government] to transitional institutions". The council met last in November-December 2003 but did not examine the 2004 budget, pending recommendations of the IMF and the World Bank. However, it authorised the government to collect taxes and duties for January. Am IMF-World Bank delegation ended a two-week mission in the CAR on Sunday. The difference between Bozize and the council's stand on February's tax collection constitutes the first major clash between them since the council's establishment in May 2003. After overthrowing President Ange-Felix Patasse, Bozize set up a transitional administration, drawn from representatives of all political, religious, social and professional affiliations in the country. Tiangaye said Bozize’s decision questioned "the credibility of the [transitional government's] consensual management". At the end of its mission, the IMF-World Bank delegation presented a memorandum to the government on the country's economic and financial situation. Headed by IMF official Mark Lewis, the mission recommended the removal of roadblocks on provincial roads, saying they hinder trade and lead to price increases. The mission also said due to the restoration of security in most parts of the country, farming activities could resume in order to reduce inflation in 2004.