Cameroon – Economic Crisis: Here’s why life will be more expensive in 2017

Written by Deckson N.

Status of the economic operator, tourist tax in hotels, value added tax of furnished apartments, increase in the price of the communal stamp … State measures strongly contested by economists.

To achieve the 6% growth target in 2017, the Government must take drastic measures to replenish the state coffers. Thus, no fewer than thirty tax and customs measures will be applied to collect the 4373.8 billion FCFA representing the 2017 budget.

According to the Directorate-General of Taxes (DGT), it is inter alia the institution of a status of authorized economic operator which is constrained to good citizenship; The imposition of a visitor’s tax ranging from 500 to 5000 FCFA per night according to the standard of the hospital; The VAT of furnished apartments, an increase in the price of the communal stamp from 200 to 600 CFA francs. All these measures have as aim, according to the DGT “to improve the living conditions of citizens“, one reads in the Le Messager newspaper of Thursday 5 January 2017.

In the same vein, another ten measures are envisaged to mobilize revenue. Among them, taxation, export of medicinal plants, with a rate of 2% imposed on the right of exit; The taxation of vehicles over 10 years old on excise duties and the increase from 17.5% to 20% of the right of exit on logs.

Unfortunately, all these innovations of the State are strongly contested by experts. According to Dieudonné Essomba, economist, “these measures of the Ministry of Finance will intensify the crisis“. Indeed, according to him, these measures aimed at redressing the state treasury will rather lead to serious damage to the productive system. For his part, the president of the African School of Contemporary Economics proposes to “find mechanisms that reduce public spending. The right solution is to direct demand to local production, regardless of its quality and cost, “he urged.

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Deckson N.

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