(Business in Cameroon) – The Cameroonian government forfeited CFA113.5 billion in tax revenue in 2023 to encourage private sector investment projects, according to the Ministry of Finance’s report on tax expenditures. This amount represents 25.2% of the country’s total tax expenditures for the year and 3.1% of the total tax and customs revenue collected in 2023.
The Organization for Economic Cooperation and Development (OECD) defines tax expenditures as specific measures that deviate from the standard tax system, causing revenue losses to promote particular economic activities or benefit certain social groups. In Cameroon, such measures include special tax regimes for companies operating in free zones or economically disadvantaged areas.
In addition, a 2013 law, updated in 2017, provides incentives for private investment in Cameroon. These legal provisions offer tax and customs exemptions to investment project holders, with benefits lasting between 5 and 10 years. These exemptions apply during both the setup and production phases of businesses.
