Cameroun state takes charge of local taxation
In a recent move, Cameroon’s government has stripped local councils of their authority to collect local taxes and duties, transferring this responsibility to the General Tax Directorate. The stated goal is to combat widespread fraud in tax collection.
While framed as a rationalization of the tax system, this reform represents a centralization of financial control at the national level, even as the country continues to promote decentralization policies. The shift has sparked mixed reactions among local authorities.
Local authorities divided over tax collection reform
In Doumaintang, a municipality in the East Region, Mayor Honoré Koumé welcomes the change. He highlights persistent issues with local tax collection, including irregularities in procedures and conflicts between municipal agents and market traders.
“It must be acknowledged—no one can deny—that inflated fiscal mismanagement, from corrupt collection agents to flawed procedures, led to extremely high tax evasion rates,” Koumé explains. “The frequent disputes between municipal agents and traders, including motorcycle taxi operators, reflect the difficulty in properly managing tax matters.”
The mayor argues that the General Tax Directorate possesses the necessary resources, training, and expertise to ensure efficient tax collection.
Concerns over local development funding
In Betaré-Oya, another municipality in the East Region, Mayor Nicolas Baba expresses reservations. He believes decentralization should empower local governments to manage their own resources.
“The projects we promised our constituents remain unrealized,” Baba states. “When decentralization was introduced, we were told local development would finally move forward. Now, we’re forced to shelve these initiatives until the situation becomes clearer.”
The reform risks depriving municipalities of a critical revenue stream, potentially hindering local development. Several communes, including Nkongsamba, have faced allegations of embezzlement, poor governance, and budgetary irregularities in recent years, prompting the government’s intervention.
With over 360 municipalities in Cameroun, the coming months will reveal the true impact of this reform on local finances and the ability of councils to meet public expectations.