(Business in Cameroon) - In the 2020 finance law, Cameroon decided to reduce the customs tariff on the importation of vehicles destined for public transport to 5%.

In a document signed on March 26, 2020, the Minister of Finance set the conditions for the implementation of the government’s measures, which is part of a “special program” aimed at renewing mass transportation means in preparation for the CHAN2020 (postponed because of the coronavirus crisis) and the AFCON2021.

According to the government, this tax relief will be in force until December 31, 2021, and vehicles benefiting from this facility may only be used for activities other than urban public transport after 3 years following their registration.

The vehicles concerned by the tax relief are those with a cubic capacity below 1,600 cm³, whose "bodywork provides for at least four side doors...," as well as coaches "covered by a licence assigning them exclusively to urban passenger transport."

These vehicles may be purchased by individuals or corporations holding a transport licence or any other relevant document. Vehicles should be purchased exclusively from local authorized dealers with "bonded warehouses.”

“The sale of vehicles cleared at the stated rate to persons without transport licence or any other regulatory document exposes the dealer concerned to the penalties provided by the Cemac Customs Code for diversion from a preferred destination, without prejudice to the recall of the duties and taxes evaded," the note states.  

Brice R. Mbodiam