(Business in Cameroon) - The agents of Camwater, the public water utility company, expose themselves to an individual fine of XAF5 million per connection or subscription operation to the drinking water access network, carried out in favour of customers without a unique identification number.

This identification number is a kind of registration as a natural and or person in the country's tax registry. In a memorandum signed on January 17, 2020, Camwater's general manager, Gervais Bolenga, recalls that this provision is put in place in accordance with Cameroon's 2020 finance law.

Indeed, the law makes subscriptions to electricity and drinking water supply networks, as well as access to banking and land services subject to the presentation, by the applicant, of a unique tax identification number issued by tax authorities.

In the event of an infringement of this provision, the company providing the service requested is liable to a fine of XAF5 million per operation, the Finance Act stipulates. Camwater’s general manager intends to transfer this fine to the agent involved.

According to the General Tax Code in force in Cameroon, all legal entities and all individuals carrying out an income-generating activity are required “to submit an application for registration with the territorially competent tax service within fifteen (15) working days following the start of their activities.” Following this application, a unique tax identification number is issued marking the taxpayer's entry in the tax registry.

However, many Cameroonians do not comply with this requirement. Hence the measure is taken in the 2020 Finance Act to force them to do so but also to continue in the implementation of the tax base broadening policy initiated in recent years.

Brice R. Mbodiam