In Cameroon, the central government recently reassigned the responsibility for collecting local taxes and levies from municipal councils to the General Directorate of Taxes. The stated primary objective behind this significant shift is to combat widespread fraud.

While officially framed as a fiscal rationalization reform, this measure undeniably signals a strengthening of central state control over local finances, even as the nation publicly champions its decentralization agenda.

In communities such as Doumaintang and Betaré-Oya, both situated in the East region, residents harbor numerous expectations. They face challenges like deteriorating roads, difficult access to villages, and a notable scarcity of public amenities.

Officially targeting irregularities

In Doumaintang, Mayor Honoré Koumé views this reform as a chance to restore order. He asserts that local tax collection efforts were plagued by numerous irregularities.

“It must be acknowledged, and no one can deny it, that the proliferation of deviant behaviors, both among collection agents and in the mastery of procedures, led to a very high rate of tax evasion at that level,” he elaborated. “The frequent conflicts observed in urban areas between municipal agents, market vendors, and moto-taxi drivers clearly demonstrate this difficulty in effectively managing fiscal matters.”

Mayor Koumé further emphasized that the General Directorate of Taxes possesses the requisite logistics, training, and recognized expertise to efficiently collect taxes.

However, in Betaré-Oya, Mayor Nicolas Baba expressed reservations regarding this reform. He firmly believes that true decentralization should originate and be exercised at the grassroots level.

A potential obstacle to local development?

The state-mandated reform threatens to strip communes of a crucial revenue stream, potentially impeding local development initiatives.

Mayor Baba remarked, “The projects we pledged to our constituents are now far from being realized. When decentralization was discussed, the promise was that things at the local level would finally start moving. So, are we simply to shelve all our projects until matters become clearer?”  

This reform appears to align with the central government’s desire to tighten oversight on local financial management. Over recent years, several communes, notably Nkongsamba, have been embroiled in allegations of embezzlement, poor governance, or budgetary irregularities.

Across Cameroon’s more than 360 communes, the coming months will be critical in assessing the true impact of this reform on local finances and the ability of these municipalities to meet their populations’ needs and expectations.