Cameroun centralises local tax collection under state control

The Cameroonian government has revoked the authority of municipalities to collect local taxes and duties, transferring this power to the General Tax Directorate. This decision, framed as a fiscal rationalisation reform, marks a significant shift toward centralised control over local finances despite the country’s ongoing decentralisation efforts.

In the East Region, where municipalities like Doumaintang and Betaré-Oya face pressing infrastructure needs—crumbling roads, remote villages, and a lack of public amenities—this move has sparked mixed reactions. While some see it as a necessary step to curb fiscal mismanagement, others fear it could stifle local development.

Mixed reactions in the East Region

Honoré Koumé, mayor of Doumaintang, welcomes the reform, citing widespread irregularities in local tax collection. “It’s undeniable that the inflation of misconduct—both among collectors and in procedural oversight—led to extremely high tax evasion rates,” he explains. “Frequent conflicts between municipal agents and traders, as well as moto-taxi operators, reflect the challenges in managing fiscal matters effectively.”

Koumé believes the General Tax Directorate possesses the logistics, training, and expertise required to streamline tax collection, addressing long-standing issues of inefficiency and corruption.

However, Nicolas Baba, mayor of Betaré-Oya, voices scepticism. For him, decentralisation must empower local authorities from the ground up. “We’ve been promising projects to our communities, but now we’re left in limbo,” he argues. “When decentralisation was announced, we hoped change would start at the local level. Now, all our initiatives are on hold until clarity emerges.”

A potential setback for local development

The reform risks depriving municipalities of a critical revenue stream, potentially slowing infrastructure and social project progress. Recent years have seen accusations of embezzlement, poor governance, and budgetary irregularities in several Cameroonian communes, including Nkongsamba.

With over 360 municipalities nationwide, the coming months will reveal how this centralisation affects local finances and their ability to meet public expectations.