Cameroon’s central government reclaims local tax collection powers

Cameroon: central government takes charge of local taxation

Despite promises of decentralization, the Cameroonian government has stripped local communes of their authority to collect municipal taxes and levies.

Le palais présidentiel à Etoudi, dans le nord de Youandé.

In a significant shift, Cameroon’s government has recently transferred the power to collect local taxes and duties from municipal councils to the General Directorate of Taxes. This move, officials state, is primarily aimed at combating widespread fraud within the system.

While presented as a fiscal rationalization reform, this decision signifies a tightening grip by the central state over local finances, even as Cameroon continues to advocate for decentralization.

Across the East Region, in communes like Doumaintang and Betaré-Oya, residents harbor numerous expectations for improved infrastructure. These areas grapple with severely degraded roads, challenging access to villages, and a notable scarcity of public amenities.

Officially: curbing fiscal irregularities

In Doumaintang, Mayor Honoré Koumé views this reform as a chance to instill greater order. He contends that local tax collection was plagued by numerous irregularities and misconduct.

“One must concede, and no one will dispute this, that the proliferation of deviant behaviors, both among collection agents and in the mastery of procedures, led to a very high rate of tax evasion at that level,” he explained. “The frequent conflicts observed in communities between municipal agents, market vendors, and moto-taxi operators clearly illustrate the difficulty in effectively managing tax matters.”

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According to Honoré Koumé, the General Directorate of Taxes possesses the necessary logistical capabilities, as well as the specialized training and recognized expertise required for efficient tax collection.

However, in Betaré-Oya, Mayor Nicolas Baba voiced reservations about the reform. He firmly believes that true decentralization must originate and be exercised at the grassroots level.

A setback for local progress?

The state-mandated reform risks depriving communes of a crucial revenue stream, potentially hindering local development initiatives.

For Nicolas Baba, “the projects we promised our communities are now far from being realized. When decentralization was first discussed, we believed that things at the local level would finally begin to move forward. So, are all our projects now to be shelved, awaiting greater clarity?”

Young Cameroonians striving for change

This reform appears to stem from the state’s desire for tighter oversight of local financial management. Indeed, several communes, including Nkongsamba, have faced accusations of embezzlement, poor governance, and budgetary irregularities in recent years.

Across Cameroon’s more than 360 communes, the coming months will reveal the true impact of this reform on local finances and the capacity of municipal authorities to meet the needs and expectations of their populations.