REPUBLIQUE DU CAMEROUN
PAIX-TRAVAIL-PATRIE
MINISTERE DES FINANCES
REPUBLIC OF CAMEROON
PEACE-WORK-FATHERLAND
MINISTRY OF FINANCE
N°.../MINFI/DGD
Yaoundé, le...
UNDERSTANDING THE REFORM UNDERTAKEN BY THE GOVERNMENT ON THE SYSTEM OF DIGITAL COLLECTION OF CUSTOMS DUTIES AND TAXES DUE ON IMPORTED TELEPHONES AND OTHER TERMINALS (IN TWELVE (12) QUESTIONS)
1- Why was this reform undertaken?
Despite the strengthening of border surveillance, notably through Operation Halt to Illicit Trade "HALCOMI", the Customs Administration recorded a drastic drop in revenue from the import of telephones. Today, less than 100 million CFA francs are collected per month out of the approximately 2 billion collected in the 2000s. This decline contrasts with the increase in the number and quality of telephones imported in a challenging security context.
It is estimated that nearly 4 million telephones are imported into Cameroon per year, representing a potential of 13 billion FCFA in revenue per year, if each phone has a minimum average of 10,000 FCFA. This represents a shortfall of nearly 12 billion per year.
Meanwhile, the revenue targets assigned to the Customs Administration have more than doubled in 15 years, going from 347 billion in 2005 to 841.5 billion in 2019. In this context where the Government itself is working to maintain the tax break, it was necessary to broaden the tax base, explore niches that continue to escape taxation, and seek the best mechanisms for collecting and securing revenue. The establishment of a digital collection system for customs duties and taxes on imported telephones and terminals is in line with this reflection. This innovative and revolutionary solution was presented by the Government to the Parliament, which approved it and enshrined it in article seventh of the finance law for the 2019 financial year.
2- What are the objectives of this reform?
The reform aims to optimize the revenue collected on telephones and terminals (tablets and modems) imported into Cameroon, whether they have spontaneously paid the duties
and taxes when crossing the border, or whether they have been introduced fraudulently or in suspension of said duties. In the short term, the Customs plans through this reform to multiply its revenues by 2500% from the first year of implementation.
On the other hand, this reform aims to provide the Customs Administration with modern tools for collecting taxes wherever they are located, in particular through ICTs. Likewise, the automation of collection reduces human contact which is oftentimes the basis of unethical practices.
Finally, this digitization of the collection of customs duties and taxes eliminates any effect of smuggling on telephones since, whatever the mode of entry, they will be taxed as soon as they are connected to a telephone network.