(Business in Cameroon) - Cameroon forecasts its tax burden to be 12.6% in 2023, and 11.8% of GDP in 2022. The figures are included in the economic and budgetary calendar presented last July 5 to the MPs, on the sidelines of the budgetary orientation debate for 2023.

The document indicates that the upward trend should continue in 2024 and 2025 at a rate of 0.5 points per year to achieve a mobilization level of 13.6% of GDP for non-oil internal revenues in 2025. The government plans to rationalize tax expenditures, both in terms of internal and external taxation.

An increase in the tax burden will not be appreciated by the private sector, which is already complaining about the current level. In 2020, the Cameroon Employers’ Grouping (Gicam) made a plea to the government to review taxation in the country. The association also criticizes the resurgence of various tax audits and parafiscal, coupled with their overlap; the inefficient tax control missions that often end with false, disproportionate, and exorbitant adjustments; the mismatch of tax interpretation between tax controllers, etc.

The Directorate General of Taxes (DGI) believes that the tax burden in Cameroon is still below both the international standards and the African average estimated at 16.5% in 2018. "It is generally accepted that the share of compulsory levies in national wealth must reach at least 25% to be significant and generate real development," the DGI said. In addition, the current tax burden is even lower than in previous years. Indeed, the rate of tax pressure calculated based on overall revenue increased from 12.1% in 2010 to 14.6% in 2019 with peaks of 14.7% in 2015 before falling to 11% in 2020 and 11.8% in 2021.

S.A.