Cameroon centralizes local tax collection amid decentralization efforts
Cameroon takes control of local taxation, raising concerns over decentralization
In a move that contrasts sharply with its ongoing decentralization agenda, the Cameroonian government has revoked the authority of local municipalities to collect taxes and levies. The decision, justified under the guise of combating tax evasion, effectively transfers this responsibility to the General Tax Directorate.
While officials frame this as a necessary step toward fiscal efficiency, critics argue it represents a centralization of power that undermines the very principles of governance reform. The timing of this policy shift raises questions about the government’s commitment to empowering local administrations.
Mixed reactions from local leaders
In the eastern region, where municipalities like Doumaintang and Bétaré-Oya face significant infrastructure deficits, this policy change has sparked divided opinions. Honoré Koumé, mayor of Doumaintang, welcomes the move, citing widespread irregularities in local tax collection that fueled conflicts between municipal agents and traders.
“The inflation of deviant behaviors—both among collection agents and in procedural oversight—has driven tax evasion to unsustainable levels,” he explains. “The frequent disputes in markets and with motorcycle taxi operators over tax enforcement highlight the chaos that had taken root.”
Koumé argues that the General Tax Directorate possesses the expertise and resources to improve collection efficiency, though he acknowledges the need for transparency in how funds are redistributed.
In contrast, Nicolas Baba, mayor of Bétaré-Oya, voices skepticism. For him, decentralization must empower local governments to make decisions that directly impact their communities. He warns that the reform could stifle development initiatives already planned for the area.
Development at risk?
The shift in tax collection authority could deprive municipalities of critical revenue streams, potentially halting projects aimed at addressing local needs. Baba questions the government’s commitment to decentralization, noting that communities were promised greater autonomy to drive progress.
“We had projects ready to launch for our people,” he says. “Now, with this uncertainty, do we shelve them until the situation becomes clearer? That’s not what decentralization was supposed to mean.”
The government defends the reform as a measure to curb mismanagement and financial irregularities in local administrations. Recent years have seen allegations of embezzlement, poor governance, and budgetary misconduct in several municipalities, including Nkongsamba.
As Cameroon navigates this policy shift, the coming months will reveal its true impact on local finances and the ability of municipalities to meet public expectations.
