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(...) In addition to customs duties and VAT, government revenue is derived from indirect taxes such as (...) an ecological tax on packaging (...)

Table A3.3 Goods subject to the Ecological Tax
Description Rates (CVEsc/kg)
I. Products and packaging of large consumption
Batteries and cells of electric batteries 100
Rechargeable batteries 50
Articles for the transportation or packing of goods made of plastics, corks, lids, caps and other devices designed for sealing containers, of plastic (PET and derivatives) 50
Carboys, bottles, flasks, jars, pots, vials, ampoules and other glass containers for transport or packaging (glass and similar items) 50
Tanks, casks, drums, jerry cans, cans, boxes and similar containers (metal) 50
Paper and cardboard, coated 50
Rockets, fireworks, firework bombs, firecrackers and other pyrotechnic articles 200
Plastic foil in rolls 60
Photographic plates and films for disposable photos 50
Aluminium foil in rolls 80
Kitchen utensils in disposable or non-disposable plastic 80
Cigarettes and cigarillos 200
New tyres 50
Retreaded or used tyres 100
Plastic cups 80
Petroleum oils and derivatives 2
Plastic trays for eggs 5
Packing cases, boxes, crates, casks and similar wood packaging, wood cable reel, pallets 20
Disposable diapers for babies and children 5
Chewing gum 100
Electrical and electronic products 2
Balloons 10
II. Products and packaging for industrial production and subsidiary materials
Articles for the transportation or packing of goods made of plastics, corks, lids, caps and other devices designed for sealing containers, of plastic (PET and derivatives) 25
Carboys, bottles, flasks, jars, pots, vials, ampoules and other glass containers for transport or packaging (glass and similar items) 2
Tanks, casks, drums, jerry cans, cans, boxes and similar containers (metal) 11
Paper and cardboard, coated 10
Plastic foil in rolls 25
Aluminium foil in rolls 18
Packing cases, boxes, crates, casks and similar wood packaging, wood cable reel, pallets 2

Revenue from the Ecological Tax is earmarked; 75% may be allocated to specific projects aimed at reducing waste, the promotion of eco-efficient consumer goods, and improved waste management. The remainder is used to fund educational programmes for the population in the environmental area (15%), and to maintain an Environmental Fund (10%). The General Directorate of Environment is responsible for the administration and supervision of funded projects and programmes. The disbursement of the tax receipts has apparently been the cause of some friction between local and central government authorities. [33]

[33] ASemana, "ANMCV threatens garbage collection strike if government continues to retain ecological tax funds", 1 September 2014. Viewed at: http://www.asemana.publ.cv/spip.php?article102626&ak=1
Decree-Law No. 40/2013 of 25 October 2013 regulates the selection of projects financed by the Ecological Tax. (...)

Table 3.5 Tax revenue, 2012-14
(CVEsc million)
2012 2013 2014
- Ecological Tax 543 602 592

The State does not pay VAT on operations in the exercise of its governmental authority, and services provided by non-profit organizations (trade unions and organizations of a political, religious, patriotic, humanitarian, philanthropic, recreational, sporting, cultural, environmental or civic nature) are exempt from VAT. (...)

Cabo Verde still applies an open and general import licensing system, which was implemented in order to control the import of products that may adversely affect the country's environment and safety and people's health. Cabo Verde has a long tradition in the implementation and management of its import licensing system.

The ECOWAS (Economic Community of West African States) Treaty calls for relaxation and gradual removal of quantitative restrictions in intra-community trade (Article 41). However, having informed the Executive Secretary of ECOWAS and the other ECOWAS member States, any ECOWAS member may impose restrictions or prohibitions based on (...) (vi) the control of narcotics, hazardous and toxic wastes, nuclear or radioactive materials; and (vii) products and materials used in the development or exploitation of nuclear energy. On this basis, Cabo Verde has defined a list of products subject to "international trade restrictions", enumerated in Table 3.6.

Table 3.6 Products subject to international trade restrictions
HS Number Description Justification
(...)
9705.00 Collections and specimens for zoology, botany, mineralogy, anatomy collections, or collections of a historic, archaeological, palaeontology, ethnographic or numismatic interest Protection of biodiversity and national treasures of cultural, artistic, historic, archaeological value
(...)

Export operations in general became exempt from licensing under the terms of Article 9 of Law No. 92/IV/93 of 15 December 1993. However, Cabo Verde prohibits exports of endangered flora and fauna covered by the International Convention on Endangered Species of Flora and Fauna (Washington Convention) according to Article 45 of the Customs Code. The Convention was approved through Decree No. 1/2005 of 21 March 2005. Protected plants and animals are listed in Regulatory Decree No. 7/2002 of 30 December 2002. Most of these species can be found in preserved areas in Cabo Verde, i.e. national and natural parks created through Decree-Law No. 3/2003 of 24 February 2003.

(...) Projects implemented in accordance with the 2012 Investment Law may generally claim a 30% reduction in their corporate income tax for eligible investments, rising to 50% for investments in tourism projects, air and sea transportation, renewable energy, and information technology. (...)