Cameroon – The finance law 2018

We present to you a selection of the measures of the new law promulgated on December 21, 2017. This description cannot therefore be considered as exhaustive, it is indeed necessary to refer to the full text for the other measures planned for the fiscal year 2018 on our website.

After adoption by the two chambers of the Cameroonian Parliament, the Head of State, Paul Biya, promulgated on December 21, 2017, the Law of Finance (LF 2018) of Cameroon for the year 2018. For the fiscal year 2018, the expenses of the general budget of the State of Cameroon are estimated at CFAF 4,513 billion. This budget is up 140 billion CFA francs compared to the 2017 fiscal year.

Téléchargez la loi de finance 2018 ici

Cameroon’s new budget is part of a context marked by a reduction in oil and customs revenues. Faced with this situation, the new provisions of the Finance Act are adapting and are articulated around the following three main axes:
• Broadening the tax base to increase non-oil tax revenues
• Securing tax revenues
• The development of measures to fight against fraud and tax evasion
To achieve these objectives, the 2018 Finance Act includes several measures relating to customs duties among others.

Export right of exit
The Finance Act introduces this year, a common rate of export duty of 2% of the taxable value of goods (FOB – Free on Board).
An exemption is also provided for the export of manufactured industrial products to Cameroon, raw products of animal, vegetable and mining origin that have been processed or processed in Cameroon. By derogation from the common rate of 2%, there are higher rates. It will thus be charged a 5% exit tax on the export of certain products such as gum arabic, kola nut, palm oil, pepper, etc.
An exit fee plus 30% will apply to the taxable value of each species for timber exported from logs. It should be noted that this right also applies to timber declared for industrial free points.
Lastly, exports of oil, gas and mining companies, as well as those made by approved companies to the private investment incentive scheme, remain governed by the sectoral regulations applicable to them.

Borrowings and State Treasury
The present budget law authorizes the Government to negotiate and possibly conclude during the financial year 2018, on terms safeguarding the financial interests of the State as well as its economic and political sovereignty, concessional and non-concessional loans of global amounts. respectively 150 billion CFA Francs and 436 billion CFA Francs. Another provision of this MQ, the Government is authorized to use issues of government securities, including Treasury bonds, for the development financing obligations for a maximum of 260 billion CFA francs.

Collection of taxes on public expenditure
As for the collection of taxes and taxes on public expenditure, the Finance Act provides that any authorizing officer of a public expenditure is obliged to proceed with the budgetary commitment of the taxes and dues due at the same time as the service itself. included on start-up advances. This implies that taxes and duties are collected by means of withholding tax operated by the public accountant when settling bills, including start-up advances, paid from the state budget, local and regional authorities and public institutions.

Controls of taxes and taxes on public expenditure
This is about securing the taxes collected. For this purpose, the Finance Act provides for the tax authorities to control the repayment of taxes due to the occasion of the execution of the expenses made on the budget of the State, the local authorities decentralized and the public establishments. The time is now up for action.