SMESEH: TAX AND CUSTOMS INNOVATIONS IN THE FINANCE LAW ON THE PROMOTION OF THE IMPORT-SUBSTITUTION POLICY
MINISTRY OF SMALL AND MEDIUM-SIZED ENTERPRISES, SOCIAL ECONOMY AND HANDICRAFTS
MINPMEESA Newsletter No. 1
March 2023
Tax reforms constitute a core element in public policy and have an impact on economic activity. Cameroon's economic outlook for 2022 projected growth of 4.1% and an inflation rate of less than 3%. However, according to the National Institute of Statistics (INS), economic activity in 2022 saw a slowdown in growth to 3.4% and an inflation rate of 6.2% compared to 2021 (growth rate 3.5% and inflation rate 2.3%).
As a result, there is a decrease in growth of 0.1% compared to 2021 and of 0.7% compared to the forecast, as well as an increase in inflation of 3.9% compared to 2021 and of 3.2% compared to the forecast. This under performance is mainly caused by the persistent effects of the health crisis, aggravated by the Russian-Ukrainian war.
To reduce this gap, the government's action remains mainly focused on the continued implementation of the National Development Strategy 2020-2030 (NDS-30), with an emphasis on the structural transformation of the economy through promoting the import-substitution policy.
In this regard, the State has undertaken actions to increase productivity in some of the key sectors of structural transformation, through the tax and customs innovations in the 2023 Finance Law. These are: agro-industry, forestry-wood, cotton-textile-clothing-leather. These innovations deal with: (i) facilitating access to land to encourage the implementation of second-generation agriculture; (ii) implementing the support plan for local production; (iii) exempting from taxes and duties, companies operating in the agro-industry and wood sector.
To play its role in achieving the NDS-30 goals, MINPMEESA is carrying out actions aimed at increasing the productivity of SMESEH in the targeted sectors in order to promote the import-substitution policy. It is with that aim in mind that the Ministry decided, through this Newsletter, to inform its targets on the tax and customs innovations in the 2023 Finance Law, in order to enable them to reap the best benefits.
- Tax innovations in the Finance Law for SMESEH in the MINPMEESA targeted sub-sectors
Strengthening of the promotion mechanism for the agricultural, livestock and fisheries sectors
General incentives applicable to all actors (VSEs, MEs, CIGs, etc)
In the start-up phase
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- Exemption of the patent;
- Exemption from VAT on agricultural inputs and equipment;
- Exemption from registration fees on transfers of agricultural land and loan agreements;
- Exemption from property tax on agricultural land;
- Exemption from tax and employers' contributions on salaries paid to seasonal agricultural workers.
DIVISION OF STUDIES, PROJECTS AND FORECASTS (DEPP)
P.O. BOX. 6096 YAOUNDE Contact: (+237) 222 23 23 88 Fax: (+237) 222 22 41 58 E-mail: cabinet@minpmeesa.cm Website: www.minpmeesa.cm
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Tax innovations in the Finance Law for SMESEH in the MINPMEESA targeted subsectors
Strengthening of the promotion mechanism for the agricultural, livestock and fisheries sectors
Specific incentives for actors during the first 05 years of operation:
- CIG