2025 Budget
In a Circular Letter signed on 31 December 2024, the Minister of Finance gave new guidelines for implementing the Finance Act and monitoring the State Budget for the year 2025. Below are the key innovations:
Promoting Import-Substitution
With a view to encouraging domestic production and curbing dependence on imports, two key measures have been introduced:
1. Exclusion from customs incentives: Imported goods with locally-produced equivalents will no longer benefit from customs incentives, except under free-trade agreements (Cameroon-European Union/Cameroon-UK EPA, AfCFTA, CEMAC/ECCAS) or in the event of a shortage of domestic production.
2. 50% reduction on feed supplements: Livestock feed supplements not produced locally will benefit from a 50% reduction on their taxable import value, subject to approval by the Minister of Livestock, Fisheries, and Animal Industries (MINEPIA).
Improving the business climate
Several measures have been adopted for a more dynamic business climate:
1. Tariff cuts for software: Imported software will be subject to a 10% rate when declared voluntarily, as opposed to 20% in the event of a finding by the authorities.
2. Exit duty on processed timber: An exit duty of 5% will be applied to timber from the third stage of processing.
3. Payment of transfer duties: Customs departments can henceforth collect transfer duties on imported used cars, and collect VAT on customs brokers' fees, as well as for amounts payable for handling, scanning, inspection and control services via the CAMCIS platform.
Green taxation
A number of tax measures have been introduced for better environmental protection:
1. 50% reduction on electric cars: Brand new imported electric cars and motorcycles, as well as their batteries and charging stations, will enjoy a 50% reduction on their taxable value over a period of 24 months.
2. 20% tax reduction on compliant shipments: Shipments of cocoa, rubber and timber products that comply with anti-deforestation standards will benefit from a 20% tax reduction on their FOB value.
3. Exemption from excise duty: Electric cars will be exempt from excise duty on import.
These measures are intended to boost local production, improve the local business climate, and promote environmentally-friendly practices.