Economy

Government Debunks Claims Cameroon Among Most Taxed Nations in Africa

Claims that Cameroon is among African countries with the heaviest tax burdens are “the furthest thing from the truth,” says Ebune Bertrand, head of the Taxation Unit in the Ministry of Finance.

He made this assertion Wednesday, January 15, 2025, during his presentation of the government’s 2025 tax policy at the launch of the state budget in Buea.

Using data and comparisons, he sought to dispel misconceptions while outlining measures to broaden the tax base and introduce equitable adjustments.

Bertrand highlighted Cameroon’s tax-to-GDP ratio, which stands at 13.9 percent, below the African average of 16 percent and significantly lower than Tunisia’s 32 percent and Ghana’s 14.1 percent.

“If you earn 100 francs in Cameroon, the government takes 13 francs. In Tunisia, it’s 32 francs. These figures prove that our tax burden is relatively low,” he stated.

Spiralling Tax Revenue

Despite this lower ratio, Cameroon’s tax revenue has grown significantly, rising from FCFA 800 billion in 2018 to over FCFA 3,000 billion today.

The government plans to increase this to FCFA 4,000 billion by 2027 through broader participation in the system rather than higher rates.

To achieve this, the government has introduced measures to expand the tax base.

According to Bertrand, the number of registered taxpayers has increased from 20,000 in 2013 to over 400,000 today.

This growth includes businesses in the informal sector, religious organizations engaged in commercial activities, and individuals previously outside the tax net.

“We want everyone to contribute their fair share so we can build a prosperous economy together,” Bertrand emphasized.

While the government has avoided increasing general tax rates, it has made some targeted adjustments.

One such measure is the increase in levies on first-class air tickets from FCFA 150,000 to FCFA 300,000.

Bertrand described this as a fair policy, stating, “If you can afford first-class travel, you can contribute more to the public treasury.”

This adjustment does not affect economy-class travelers, ensuring that the tax does not burden the broader population.

Mobile Money Tax Explained

About the increment in mobile money transactions this year, the head of the taxation unit said the tax is subtle and calm.

He said Cameroonians are not feeling the pinch, as it raises so much revenue for the state.

“You do not feel it, and that’s a good tax. A good tax is one which gives revenue because we are with at least 20 billion francs from this tax, but you don’t feel it. It doesn’t have any incidence in your economic operation. Since the 1st of January, nobody has refused to transfer money because there is 4 francs, not four percent, four francs. You see, it does not change your economic pattern, and this is a good tax because it’s a neutral tax. So this is the only adjustment, if I can call it an adjustment, which has a positive effect on the tax base,” he expatiated.

In addition to revenue-generating measures, the government has introduced incentives to promote economic growth and reduce unemployment.

Employers hiring Cameroonians under the age of 35 are now exempt from payroll taxes for three years. This excludes social security contributions.

The measure, the government believes, will encourage job creation and tackle youth unemployment.

Boosting Agricultural Investment

Furthermore, agricultural investments benefit from a five-year exemption on income taxes and indirect levies on imports like equipment and insecticides.

“Our country’s GDP is driven by agriculture. By supporting this sector, we are securing our economic future,” Bertrand explained.

Cameroonians have also benefited from efforts to stabilize the cost of living.

Each year, the government allocates FCFA 500 billion to subsidize basic necessities.

These include rice, sugar, and salt, ensuring these goods remain affordable for the population.

“We are committed to making life easier for Cameroonians while fostering economic growth,” Bertrand affirmed.

The government says the 2025 tax policy will help to balance fiscal responsibility with social equity.

While increasing revenue through targeted measures such as air ticket levies, the government has also introduced incentives to stimulate employment and agriculture, benefiting the broader population.

By expanding the tax base, the government ensures that contributions are distributed more fairly across society.

“We are not over-taxing Cameroonians. Instead, we are building a system where everyone contributes according to their capacity, ensuring sustainable development for our country,” Bertrand elucidated.

Claude Kengfack

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