Cameroon state reasserts control over local tax collection

In Cameroon, the government has recently revoked the power of local communes to collect taxes and duties, transferring that authority to the Directorate General of Taxes. The stated reason is to combat fraud.

Billed as a fiscal rationalization reform, this measure signals a central government reclaim of local finances, even as the country claims to continue its decentralization process.

In Doumaintang and Betaré-Oya, two communes in the East region, local expectations are high. Roads are in poor condition, villages are difficult to reach, and public facilities are lacking.

Officially, putting an end to abuses

For Mayor Honoré Koumé of Doumaintang, the reform presents an opportunity to restore order. “We must admit, and no one will deny it, that the rise in deviant behavior among collection agents and in procedural control meant that the tax evasion rate at this level was very high. The numerous conflicts in towns between municipal agents and traders in markets, and with motorbike taxis, clearly show this difficulty in managing tax matters,” he says.

Honoré Koumé points out that the Directorate General of Taxes has the necessary logistics, as well as the training and recognized expertise to collect taxes.

However, in Betaré-Oya, Mayor Nicolas Baba has reservations. He believes that decentralization should be driven from the grassroots level.

A hindrance to local development?

The reform announced by the state risks depriving communes of a major revenue source and thus hindering local development.

“We are far from realizing the projects we promised our populations,” says Baba. “When we talked about decentralization, we said things at the grassroots would finally start moving. So now we put all projects on hold until things become clearer?”

This reform is said to respond to the state’s desire to better supervise local financial management. Several communes, notably Nkongsamba, have been tainted in recent years by allegations of embezzlement, poor governance, or budgetary irregularities.

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