(Business in Cameroon) – Cameroon plans to broaden its non-oil revenue base under its national budget strategy. For the first time, the government expects tax and customs revenues to go beyond CFA4 trillion in 2025.
According to the Medium-Term Economic and Budgetary Programming Document for 2025-2027, the government eyes CFA4,410.7 billion for 2025, CFA4,806.7 billion for 2026, and CFA5,238.8 billion for 2027.
To achieve this goal, Cameroon plans to gradually increase the tax burden but maintain it below the African average. Currently, the tax burden stands at 13.6% of the GDP (in 2024). The government expects it to rise to 14% in 2025, 14.2% in 2026 and 14.4% in 2027. In comparison, the African average was estimated at 17.2% a few years ago.
These tax increases will affect businesses but also individuals, since the government believes they are currently under-taxed. “The contribution of individuals to tax revenue in Cameroon remains low. It only accounts for 7% of domestic tax revenues, compared to 17% in countries with similar development levels (the average of 30 African countries) and 24% in OECD countries. We know households have the financial capacity to contribute more,” the Ministry of Finance noted.
Between 2025 and 2027, the government plans to implement several measures to increase taxation on individuals. One of the key steps is to enhance the reporting system for personal income tax. The Ministry of Finance stated that this is a crucial move to improve individual contributions to tax revenue. Since 2020, Cameroon has required non-professional taxpayers to file annual income tax returns to lessen the heavy reliance on corporate tax revenue.
The Ministry of Finance defines non-professional taxpayers as employees, retirees, or individuals earning income from investments or property. This requirement for an annual summary declaration is part of a strategy to broaden the tax base. It allows tax authorities to gather accurate information on non-professional taxpayers’ incomes and ensures they pay the correct taxes, making it easier to make necessary adjustments.
In addition, the Cameroonian government aims to streamline fiscal expenditure, which is currently considered “too high.” According to the OECD, tax expenditures are special measures that deviate from the standard tax system and lead to revenue losses for the state. They are designed to encourage specific economic behavior from taxpayers or to subsidize certain social groups.
As a result, the Ministry of Finance added that “tax expenditures result in a lighter tax burden for taxpayers compared to what they would owe under the standard system.” In 2022 alone, tax expenditures, also known as tax gifts, cost the Cameroonian treasury a total of CFA490.8 billion, up CFA51.2 billion year-on-year.
