Taxation in the Congo Free State, an exceptional case? (1885–1908)

ABSTRACT This article analyses the annual budgets of the Congo Free State to examine whether the broader fiscal patterns observed for British, French and Portuguese Africa can be found in Leopold’s colony; often considered a fiscal exception. The fiscal history of the Free State was unique. A history of the income composition of the state however reveals that Leopold’s revenue-raising strategies showed a lot of similarity with colonial taxation in British, French and Portuguese Africa. Leopold’s administration faced the fiscal challenge of ruling a vast, thinly populated, inaccessible colony that produced little taxable surplus, with little metropolitan support and limited access to international lending. To deal with this challenge, the Free State developed a minimalistic fiscal system that was based on the taxation of international trade and the African subject. Only during a commodity boom did this system generate sufficient income to cover colonial expenditure. The study of the not so exceptional case of the Free State hence supports the claim that the colonial scope to tax African colonies was fundamentally determined by local economic conditions and power relations, global demand for commodities and Metropolitan pressure to be financially self-sufficient.