(Business in Cameroon) - Cameroon recently submitted its fiscal stance before the parliament in preparation for the 2020 finance law. According to this stance, in 2020, the tax on some products could rise.
The stance indicates that in the short term, 2020 particularly, the country will anchor excise duties on CEMAC’s new rules on excise duties’ harmonization. It will also boost customs revenues’ mobilization increasing excise duties on products (tobacco, alcohol, hydroquinone, industrial waste, cars, motorbikes and finished goods with high sugar percentage) that are harmful to health, morality and the environment.
There will also be a gradual restoration of duties on tax-free products such as rice, wheat and fish. Part of the revenues generated by these taxes will then be affected to a fund in charge of these sectors’ development locally. Because of the suspension of these taxes, the government loses substantial resources yearly, the stance explains.
For instance, Cameroon loses close to XAF15 billion yearly because of wheat tax allowances. The 5% tax on rice and fish instead of the normal 20% leads to XAF28 billion and XAF16 billion yearly losses respectively.