Cameroon launches aggressive campaign against gold evasion to recover lost revenues

This situation underscores a direct correlation: illegal gold exports and smuggling equate to substantial losses in state revenue. By law, these vital taxes and duties are meant to be collected at the point of origin before any gold leaves the country.

As part of the government’s broader restructuring and cleanup initiatives, spearheaded by the Ministry of Mines, Industry, and Technological Development (MINMIDT), the state is now rolling out fiscal and customs recovery operations. These efforts are targeting both domestic and international fronts, aiming to reclaim outstanding amounts from operators who evaded their tax obligations between 2023 and 2025.

The internal recovery phase, set to commence on August 1st, will be led by a joint team comprising representatives from SONAMINES, the Directorate General of Taxation (DGI), and the Directorate General of Customs (DGD). Its primary goal is to recoup lost tax and duty revenues resulting from under-declared or undeclared gold production. These discrepancies led to either insufficient collection or a complete absence of collection by SONAMINES from companies operating within our borders. Two distinct categories of companies have been identified for this purpose.

The first group includes fifty-one (51) companies engaged in traditional physical gold extraction, whose declarations were found to be understated. The second category, recently identified by MINMIDT during field assessments, involves thirty-three (33) sites employing newer gold extraction technologies where production has never been declared, nor taxes collected. These concerted recovery efforts are projected to secure at least 300 billion CFA francs for the state in the very near term, effectively offsetting the approximately 165 billion CFA francs in revenue losses highlighted by the 2023 ITIE report.

Concurrently, external recovery initiatives are underway, leveraging information gathered internationally. In close collaboration with the Emirati government, the aim is to compile a definitive list of individuals and corporate entities who exported gold from Cameroon between 2023 and 2026. This collaboration is crucial for the state to reclaim hundreds of billions of CFA francs in outstanding tax revenues.

Ultimately, these dual internal and external fiscal and customs recovery streams are designed not only to compensate for past revenue shortfalls but also to ensure robust and efficient collection moving forward. A new system has been implemented for better oversight of gold production, incorporating international expertise and mandating direct collection at the source by the Tax and Customs Administrations, working alongside SONAMINES. This comprehensive restructuring aims to eliminate the previously observed discrepancies, ensuring that all entities exporting gold fulfill their financial obligations to the state.