(Business in Cameroon) - The January 2019 power bills currently being distributed in Cameroon are lighter for the vast majority of consumers. Indeed, as provided for in the 2019 Finance Act, monthly consumptions between 0 KW and 220 KW are now exempt from value added tax (VAT) set at 19.25%, lowering bills for the concerned population.
According to authorized sources, the measure benefits about 80% of the 1.2 million customers of power utility Eneo, a company controlled by the British investment fund Actis.
“Before this measure was taken, only customers whose consumption was between 0 and 110 KW were exempted from VAT payment. These represented around 70% of our portfolio, compared to 10% for those whose consumption is between 110 and 220 KW. Thus, the new tax measure concerns about 80% of our customers,” a source explained.
In need to take full advantage of the new tax provision, Eneo invites its customers to ensure they connect only one household to each electricity meter, as to save energy and control their consumption; beyond a consumption of 220 KW, VAT is applied to all consumption and that can actually lead to a more or less significant month-on-month increase in electricity bills.
Let’s recall that still in accordance with the 2019 Cameroon State Finance Act, water consumption of 20 m3 or less is also exempt from VAT.
Brice R. Mbodiam