Since the transfer of the cargo stamp duty (commonly known as a car sticker) to insurance companies at the beginning of 2017, the Treasury received a total of 6.3 billion CFA francs as of June 15 2017, reports an internal source in the Directorate-General of Taxes (DGT). The revenues collected in the first half of 2017 are almost equal to those collected throughout 2016 (07 billion CFA francs) when the tax was collected directly by the Directorate-General for Taxes.
This performance reinforces the DGT’s objective of raising CFAF 10 billion at the end of 2017 for this tax, an increase of CFAF 3 billion compared to the previous year. Everything that constitutes a genuine breath of fresh air for the decentralized local authorities, the ultimate recipients of these revenues via the Special Fund for Inter-communal Equipment and Intervention (Feicom), the Bank of Cameroon’s councils.
Optimism is all the more apparent to DGT that, in the first three months of 2017, the insurance companies had already collected 4 billion CFA francs in respect of this tax, as revealed the Minister of Finance, Alamine Ousmane Mey, on 17 May, during the installation ceremony of the new president of the Association of Insurance Companies of Cameroon (Asac). The Minfi had not missed the opportunity of this meeting with insurers to sensitize the new office of Asac on the need for them to protect these public funds they collect now, thanks to a reform implemented since 1 January 2017.
After transferring the collection of the airport tax to airlines in March 2015, the Government of Cameroon, as part of the 2016 Finance Act, has decided to transfer, from 1 January 2017, the collection to the insurance companies. The aim of this reform is to prevent certain motorists from continuing to evade payment of this tax, which is now collected at the time of the payment of the insurance premium from which the vehicle owners are split.