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(Business in Cameroon) – New finance law increases excise rates on local and imported alcoholic drinks
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Duties now range from CFA5 to CFA100 per centiliter depending on origin and category
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Higher taxes expected to lift retail prices, especially for imported products
The 2026 finance law recently adopted by Parliament raises additional specific excise duties on wines, spirits, whiskies, and champagnes, whether produced locally or imported. The measure tightens taxation on a growing consumption segment, with rates differentiated by product origin and category.
For locally produced items, the law now sets duties at CFA5 per centiliter for wines, CFA15 per centiliter for whiskies, and CFA35 per centiliter for champagnes. For lower-end imported products in the same categories, taxation is set at CFA5 per centiliter for mixed spirits, CFA10 for wines, CFA20 for whiskies, and CFA40 for champagnes. For higher-end imported goods, the additional specific excise duty rises to CFA10 per centiliter for mixed spirits, CFA15 for wines, CFA30 for whiskies, and CFA100 for champagnes.
In practical terms, a 75-cl locally produced bottle of wine will now incur CFA375 in excise duties, up from CFA225, an increase of CFA150 (+66.6 %). For imported wines, the same 75-cl bottle will be taxed at CFA750 instead of CFA300 previously, a rise of CFA450—more than double (+150 %). If margins remain unchanged, these differences are expected to be reflected in retail prices, particularly for imported and higher-end products.
Broader tax base and possible price strain
The increase in tax rates aligns with the government’s strategy to broaden the fiscal base amid rising consumption of wines, spirits, whiskies, and champagnes, both domestic and imported. The sector has become an increasingly attractive tax target. According to the National Institute of Statistics (INS), Cameroon spent CFA22.3 billion in 2023 to import 11,206 tons of wines and liqueurs, up 14.3 % from the previous year, underscoring the dynamism of this market niche.
By raising taxes on these products, the government aims to boost revenues projected at CFA5,887.0 billion in 2026, an increase of CFA452.2 billion (+8.3 %). The hike in excise duties is part of broader efforts to mobilize internal resources amid growing budgetary needs. However, the adjustment carries a risk of sharp price increases for wines and spirits, as excise duties directly affect product costs and are ultimately passed on to consumers. Importers, distributors, and retailers will have to decide whether to absorb part of the additional costs or fully pass them through, with potential impacts on sales volumes and a possible shift in demand toward less-taxed or informal segments.
Frédéric Nonos
