Cameroun revokes local tax collection powers from municipalities

In a move that reverses years of decentralization efforts, Cameroon’s central government has stripped municipalities of their authority to collect local taxes, transferring this responsibility to the General Tax Directorate. Authorities cite combating fraud as the primary justification for this decision.

The policy shift, presented as a fiscal rationalization initiative, signifies a renewed centralization of financial control despite the country’s stated commitment to decentralization.

Local governance under scrutiny

In communities like Doumaintang and Betaré-Oya, located in the East Region, residents face deteriorating infrastructure, poor road conditions, and a severe lack of public services. The new tax collection framework has ignited debate among local leaders.

Support from some mayors

Honoré Koumé, mayor of Doumaintang, views the reform as a step toward eliminating irregularities in local tax administration. He highlights systemic issues, including inflated tax burdens, procedural inconsistencies, and frequent conflicts between municipal agents and local businesses.

“It’s undeniable that both collectors and taxpayers exploited loopholes, resulting in alarmingly high tax evasion rates. Disputes in markets and with motorcycle-taxi operators over levies have persisted, underscoring the need for stricter oversight.”

Koumé argues that the General Tax Directorate possesses the expertise and infrastructure required to enforce tax compliance effectively.

Concerns from other municipal leaders

Nicolas Baba, mayor of Betaré-Oya, expresses skepticism. He believes decentralization should empower local governments to manage their own resources and prioritize community needs.

“We were promised real change through decentralization. Now, our development projects are on hold while the government redefines the rules. How can we fulfill our commitments to citizens without financial autonomy?”

Impact on local development

The government’s decision risks depriving municipalities of critical revenue streams, potentially stalling infrastructure upgrades and public service improvements. Recent scandals in communes like Nkongsamba—marked by embezzlement and mismanagement allegations—have fueled calls for tighter oversight.

With over 360 municipalities nationwide, the coming months will reveal how this policy reshapes local finance and governance. Residents and leaders alike await clarity on whether centralized control will ultimately benefit communities or hinder progress.