Property tax:

Campaign to distribute pre-filled returns launched

- Over one million property owners targeted as taxation department grants general amnesty to tax evaders

By Ojong Steven Ayukogem in Yaounde

Hiol Nicolas, Head of the Dept. of studies,

planning and reforms at the DGT

Mobile teams from the General Directorate of Taxes DGT, have since last week begun distributing pre-filled returns of property tax to owners of built-on and non-built-on estates in Douala and Yaounde. This followed the launching of the 2016 campaign for the collection of property tax on 15 April 2016.

                The campaign targets 400.000 property owners in Douala and Yaounde only. But it is hoped that over one million property owners would be registered in the property tax data-base by the time the campaign is extended to the rest of the eight regional capitals in the country.

                This was the take home message from a press briefing granted by the Head of the division of studies, planning and reforms at the DGT, Nicolas Hiol, on 19 April 2016.

                Facing pressmen, the senior tax inspector noted that though some property owners in Douala and Yaounde were actually paying their property tax, the compliance rate was unfortunately so low, barely about 20%.

                He attributed this unsatisfactory outcome to the reticence of most property tax owners and to difficulties encountered by the tax department in convincing evaders to see the need to declare and pay their property tax.

                Reason why the DGT’s representative announced reforms instituted by the taxation department to increase tax compliance of property owners with a view to attaining the target objective set for property tax in 2016.

                The reforms include notably the partnership with the country’s electricity supplier, ENEO, the granting of a general amnesty to property tax evaders and the subsequent extension of the recovery drive to other regional capitals in the country.

                Nicolas Hiol noted for instance that thanks to the partnership with ENEO, the list of potential property tax payers has increased from 138.510 in 2015 to over one million in 2016. This number is expected to rise even more due to the attractive conditions of the general amnesty, which gives property tax payers up to 31st December 2016 to comply. Those who pay their 2016 returns will have their previous arrears cancelled.

                Meanwhile, the DGT has also involved stakeholder ministries in the campaign, including notably the MINFI, MINADT, MINDCAF and FEICOM. A system of mobile payment has also been instituted which permits payment through mobile phones. 

                Property tax which is 0.1% of the declared value of the built-on or non built-on property, is levied annually to owners of property in chief towns in Cameroon. Property belonging to the state, regional and local authorities or public establishments which are not of an industrial or commercial nature are exempt from the property tax.