(Business in Cameroon) - On April 23, 2020, the Cameroonian association for the defense of taxpayers’ rights (ACDC) wrote to Prime Minister Joseph Dion Ngute suggesting a set of fiscal measures aimed at helping companies- whose tax residence is Cameroon- resist the economic impact of the coronavirus health crisis.
"Our proposals for the 2020 financial year are a reduction of the withholding tax to 50%, a reduction of the monthly advance payments on a turnover by 50%, a reduction in advance payments on purchases by 50% and the adoption of the general VAT rate of 15%," writes Mouliom Mazou (photo), president of the ACDC.
Also, the ACDC suggests the government should cover 50% of water and electricity bills until the end of the confinement, subsidize 40% of the salaries of companies’ employees to avoid layoffs that will raise the unemployment rate. The government is also advised to suspend penalties for late payment of tax obligations and defer the payment of social contributions for companies unable to pay salaries while maintaining social security coverage.
Mouliom Mazou also indicates in his correspondence that since the beginning of the health crisis, Cameroonian companies have been facing multiple problems, especially those related to the supply of raw materials for production companies and the supply of goods for distribution and marketing companies. These problems could bankrupt companies if the government does nothing, the president explains.