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Cameroon: Over 7 billion FCFA collected in four months on money transfers tax

mobile money
Tax on money transfer

A note from the Directorate General of Taxes explains the situation of non-oil tax revenue mobilisation as at 31 May 2022. From this document,   we learn that the tax on money transfers  brought in revenue of around  7.3 billion fcfa for the period February – May 2022.

The tax on money transfers was instituted in the 2022 finance law. This tax came into force on 1 January this year. “The projected yield of this measure is estimated at around 20 billion per year,” reads the explanatory memorandum of the 2022 finance bill.

This tax corresponds to 0.2% of the amount of money transfer operations carried out by any means or technical support, in particular by electronic means, mobile telephony, telegraphic means or by telex or fax… This tax is also applicable to all cash withdrawals for a money transfer carried out with financial institutions or mobile telephone companies.

However, in a report last March, the International Monetary Fund considers that “taxing mobile money may be fiscally inequitable and hamper the current low level of financial inclusion”. The global financial institution notes that “poor and unbanked segments of the population, who often live in rural areas and face high transaction costs from formal banks, are negatively affected by the measure.

For the rest, the General Directorate of Taxes informs that it has mobilised, at the end of May, CFAF 955 billion out of the expected CFAF 944 billion, “i.e. a realisation rate of 102.3% and an overshoot of the target by CFAF 21.3 billion”.



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