(Business in Cameroon) - Over the past five years, the average tax rate in Cameroon stood at 13%, 3% below the average in sub-Saharan Africa, the International Monetary Fund said in a recent report on the country’s economy.
An international IMF empirical survey showed that countries with macroeconomic conditions and institutions similar to those in Cameroon can reach a tax rate of 2% of GDP. That said, Cameroon could improve tax revenues through better tax collection system and lower tax exemptions. IMF technical assistance has identified up to 2.5% of GDP in potential additional revenue from increased tax administration efficiency.
This IMF study aligns with a component of Cameroon’s three-year economic program (2017-2019). With regard to taxation, the Bretton Woods institution has always suggested the country should “broaden the non-oil revenue base, since oil resources are gradually depleting”. The aim is to rationalize exemptions and concentrate tax incentives on priority sectors and at the same time continue improving tax and customs administrations.
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