Recent reform steps
The main measures that Cameroon has taken recently to strengthen domestic revenue mobilisation are as follows:
- Gradually adjusting the special tax on petroleum products;
- Introducing certain taxes (tourist tax, specific excise duty on non-returnable packaging for liquid products);
- Introducing a corporation tax and VAT liability on furnished rentals;
- Introducing a special tax on gambling and entertainment for games organised via telephone companies;
- Applying high penalties for taxpayers not found in the taxpayer records;
- Strengthening cooperation between the tax and customs authorities.
Since 2017, a number of progress areas have been observed because of the DRM reforms introduced. These include:
- More than one million USD have been mobilised through the introduction of the tourist tax.
- 114,137 natural persons and 5,537 legal persons registered by customs, who previously did not appear in the Tax Directorate file of active taxpayers and who are now being monitored by the tax authorities.
- Taxpayers have been receiving their receipts scanned by a secure electronic transmission system.
- The yield of the special tax on petroleum products has increased by 15.5% annually following its revision in 2017.
Outlook: DRM priorities in 2019
On the tax administration side, the organisation of services and digitisation of reporting procedures to reduce the cost of and improve tax compliance have been identified as major priorities for 2019. This procedure has been extended to the business tax and to certificates evidencing collection and debt clearance. In addition, tax inspections shall be optimised and tax recovery shall be strengthened by implementing new methods for collecting motor vehicle stamp duty and taxes on the implementation of the state budget.
On the tax policy side, tax expenditure shall be controlled and tax rates and tariffs shall be reviewed.
- Raise taxpayers’ awareness of the importance of timely payment to avoid the inconvenience of forced recovery
- Computerise resource centres
- Rationalise tax expenditure
- Reduced cost of tax compliance
- Simplified procedures and revenue protection
- Reduction in tax expenditure by XAF 188 billion, which is equivalent to 0.85% of GDP