Cameroon centralises local tax collection under state control

The Cameroonian government has revoked municipal authorities’ power to collect local taxes, transferring this responsibility to the General Tax Directorate. While framed as a move to combat fraud, the decision marks a significant centralisation of financial oversight despite ongoing decentralisation efforts.

Residents in Doumaintang and Betaré-Oya, two municipalities in the East Region, have long voiced frustrations over crumbling infrastructure, poor road networks and a lack of public services. The centralised tax collection system is now set to reshape how local funds are generated and managed.

Ending financial mismanagement or undermining local autonomy?

In Doumaintang, Mayor Honoré Koumé sees the reform as a chance to curb irregularities in tax collection. He highlights widespread issues, including inflated rates, procedural gaps and frequent clashes between municipal agents and traders.

“It’s undeniable that the lack of oversight among collectors and procedural inconsistencies led to rampant tax evasion in local markets. Conflicts between agents and vendors—especially motorbike taxi operators—reflect the deep-seated challenges in managing fiscal matters,” he explains.

Koumé argues that the General Tax Directorate brings the necessary expertise, logistics and training to handle tax collection more effectively. Yet, in Betaré-Oya, Mayor Nicolas Baba questions the move, stressing that decentralisation should empower grassroots governance.

Will local development stall under the new system?

Critics warn that the reform could deprive municipalities of critical revenue, stalling projects promised to communities. Baba questions the timing: “We were told decentralisation would bring change, but now we’re left in limbo. Do we shelve development plans until the dust settles?”

The government’s decision follows repeated allegations of financial mismanagement in several Cameroonian municipalities, including Nkongsamba, where funds were allegedly misappropriated or used irregularly. With over 360 municipalities nationwide, the coming months will reveal how this centralised approach impacts local finances and service delivery.