The Cape Verde Ministry of Finance outlined 2026 strategic priorities to shift tax and customs administration towards a fully digital, data-driven model, using artificial intelligence to strengthen collections within the legal framework while avoiding tax increases. The ministry framed the reforms as necessary given rising spending and a transition to financing with less international public aid, noting annual state expenditure of around 97 million contos and growth in the public payroll from about 18 million contos in 2016 to more than 32 million contos in 2026, with salary increases over the past three years exceeding EUR 100 million. Corporate income tax rates have fallen from 25% in 2016 to 20% in 2026, with an ambition to reach 15%, so additional revenue is expected to come from formalising the economy, stronger inspections and action against tax flight, fraud and evasion. Interoperability across public services is positioned as a core enabler, linked to a wider “digital state” agenda covering digital identity, electronic signature and digital payments, with the National Directorate of State Revenues targeted to provide 100% digital services. For customs, the government has started a USD 9 million investment in AI-enabled scanning equipment and expects quicker clearance and more predictable import processes, including tools for diaspora residents to estimate import costs before shipping goods.

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