An economic agreement between Cameroon and the IMF, signed on June 26, 2017, is giving rise to comments from Cameroonians. Some people claim that the three-year plan forces the Cameroonian government to set new tax rates in 2018 and, they are right.
Cameroon’s government said in a letter of intent that it intends, from the 2018's financial law, to tap into the potential of personal tax incomes based on the properties tax whose collection system will be reformed thanks to a more structured partnership with the electricity distribution company ENEO.
“These reforms could generate about CFA10 billion in the earlier stages of their implementation and CFA50 billion upon full implementation. This, if the government shares the resources with decentralized collectivities », the letter of intent reads.
As part of the reforms, Cameroon’s government intends to ensure a better grasp of resources' transfer costs for private sectors operators most importantly operators in the oil and forestry sector but also big companies and subsidiaries of multinationals.
The Cameroonian government will realize these reforms through a dedicated unit, at the tax directorate, which could benefit from a technical assistance from IMF.