The Cameroonian tax directorate (DGI) announced it has collected a total of CFA818.5 billion over the first three months of 2023, up from the initial target of CFA761.5 billion. This makes a collection rate of 107.5%. Compared to the same period last year, this performance is also up CFA104.1 billion (+14.6%).

In detail, CFA694.6 billion was collected from the central government, CFA90.6 billion from decentralized local authorities, and CFA33.3 billion were oil tax revenue. If this good impetus is maintained throughout the year, the DGI is likely to exceed its annual target of CFA2,800 billion.

“The good performance (over the period under review) was supported by the digitalization of tax procedures and the contribution of new resources of the 2023 finance law, including the increase in the rates of stamp duties”, says the DGI. Indeed, since January 1, 2022, the price of tax stamps required for the legalization of certain administrative documents has increased from CFA1,000 to CFA1,500 in Cameroon. The measure was taken to broaden the tax base to replenish state coffers. “We have to find enough resources to face the difficult economic context. On the national level, we have initiated development actions and we need revenues to continue them. Let’s not forget that Covid and the Ukrainian war have eroded our budgetary capacities,” Finance Minister Louis Paul Motaze said last December.

Cameroon also introduced a tax on electronic money transfers (0.2% of the amount to be transferred), which became effective in January 2022.

Source: Business in Cameroon