(Business in Cameroon) – Cameroon aims to ramp up tax pressure on businesses until at least 2027. The Economic and Budget Programming Document for 2025-2027 reveals that the tax pressure, which reflects the share of taxes in the country’s gross domestic product (GDP), will rise during this period. Currently, the tax pressure stands at 13.6% of GDP in 2024. It is expected to increase to 14% in 2025, 14.2% in 2026, and 14.4% in 2027. This projected rate for 2027 marks the highest tax pressure in six years.
Despite this upward trend, the General Tax Directorate (DGI) of the Ministry of Finance notes that Cameroon’s tax pressure remains below the African average, which was estimated at 17.2% a few years ago. The DGI argues that mandatory tax contributions should ideally account for at least 25% of national wealth to drive significant development.
It remains unclear whether this projected increase in tax pressure will come from raising existing taxes, creating new levies, expanding the tax base, or a mix of these strategies. Regardless, this move is likely to spark criticism, particularly from the business community, which already accuses the government of suffocating companies.
Taxation Considered “Confiscatory”
A recent survey on the business climate in the industrial sector, published by the Ministry of Economy, Planning, and Regional Development (Minepat), reveals that 81% of business leaders in Cameroon view the current tax pressure as high, while 18% consider it average, and only 1% see it as low. Célestin Tawamba, president of the Grouping of Enterprises of Cameroon (Gecam), describes the country’s corporate tax system as “confiscatory.”
Some experts say the problem with taxes in Cameroon is more about fairness than the tax burden. Supporters of this view claim that the tax burden primarily falls on a small number of taxpayers, particularly large companies, while many potential taxpayers evade the tax system. The International Monetary Fund (IMF) highlighted in a 2021 report on governance and corruption in Cameroon that formal large companies in Cameroon face not only a high overall tax rate but also exceptionally stringent restrictions on tax deductions.
The Bretton Woods institution also noted that high effective tax burdens on profits of formal businesses promote informality and misreporting of profits and revenue. Consequently, the IMF recommends that Cameroonian authorities consider reducing legal rates for corporate tax, minimum tax, and flat-rate simplified tax systems outlined in the General Tax Code.
