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YAOUNDÉ – Cameroon’s digital income tax filing platform, launched in 2023, now processes over 425,000 declarations per month, according to Finance Minister Louis Paul Motaze. However, the platform has underperformed in terms of revenue collection, generating CFA 15 billion in 2024—CFA 10 billion less than projected, equating to a 60% collection rate.
Context & Background
The launch of the digital tax platform is part of Cameroon’s broader fiscal reform introduced in the 2021 finance law. This reform mandates that individuals earning income from salaries, pensions, annuities, or investments file their personal income taxes by June 30 each year. To accommodate citizens, the government had to extend the deadline twice.
Despite the platform’s impressive usage, technical difficulties have impeded its progress. Issues with system access and overload at launch led to delays and frustrations for users. The finance minister acknowledged the platform’s challenges but reassured lawmakers that improvements had been made to handle the increasing traffic.
Economic & Compliance Impact
While the revenue generated is a significant step forward for Cameroon’s digital tax system, the shortfall remains concerning, particularly as the system continues to gain traction. The platform’s success in processing 425,000 filings per month signals increasing compliance but falls short of meeting the government’s target revenue, a key metric for evaluating the effectiveness of the system.
Moreover, the low collection rate, 60% of the target, underlines the challenges faced in improving tax compliance and digital infrastructure. This shortfall could affect the country’s fiscal health and its ability to fund public services.
Stakeholder Reactions
“There is immense potential for this digital tax system to improve transparency and efficiency in Cameroon’s tax collection process,” said Dr. Alice Ndongo, tax expert at Deloitte Cameroon. “However, the technical issues need to be addressed quickly to build trust among taxpayers.”
The government has since ramped up its efforts to ensure the platform is better equipped for the growing number of users and has committed to resolving the recurring access issues.
Next Steps / What to Watch
Moving forward, Cameroon’s Ministry of Finance is focusing on enhancing the platform’s technical infrastructure to ensure smooth and reliable access for all users. Tax authorities are also expected to increase awareness campaigns to educate citizens about the benefits of the new system. Lawmakers will be closely monitoring future revenue reports to determine if the system can meet its long-term revenue goals.
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