Financing the state budget:

Taxation Department tasked to generate I,719 billion in 2017

By Mercy Neba in Yaounde

Taxation boss, Mopa Modeste

The Directorate General of Taxation must generate at least Fcfa 1.719 billion in the 2017 fiscal year to enable the government to meet up with its budgetary commitments for the year. This objective given the DGT in the 2017 state budget far surpasses that for the customs department that is supposed to mobilize 800 billion, and the Oil and Gaz sector that is expected to produce 455 billion.

                Despite the increase in the DGT’s 2017 objective compared to that of 2016 that stood at 1,565 billion, the General Manager of Taxation, Modeste Mopa Fatoing has indicated he and the dynamic team that he leads are confident and upbeat to stand up to the daunting challenge. This confidence of the GM of taxation can be understood especially when one considers that the taxation department generated over 1600 billion in 2017, some 35 billion over and above its target objective for that year.

                It was perhaps this exceptional performance coupled with the new measures put in place by government to broaden the tax base and also modernize revenue collection mechanisms that informed Modeste Mopa Fatoing’s confidence expressed recently on state television CRTV. The DGT was invited to elucidate the objectives and challenges that await the taxation department by virtue of the 2017 state budget.

                Talking on the occasion the young and workaholic taxation boss reassured his hearers that if the new measures are effectively applied and if his collaborators redouble their efforts and taxpayers comply with their obligations then there is no reason the DGT will not meet its 2017 objective and even surpass it why not?  

                Mopa inumerated new measures like the airport boarding tax which is now simply added to the air ticket of the traveller; the windscreen licence that will now be paid concomitantly with vehicule insurance; the new hotel lodging tax that stands at 5000frs per night per visitor for 5 star hotels, 4000 for 4 ster hotels, 3000 for 3 star hotels, 1000 for 2 star hotels and 500 frs for one-star and unclassified hotels.

                Other new taxes include those levied on games of chance organized by mobile telephone companies. It should be mentioned that mobile telephone companies organize regular games of chance which generate a lot of money for them. But this income was never taxed.

                There’s also excise duties for drinks contained in disposable bottles and plastics. It is hoped that the 15 FCFA excise duty per bottle and 5frs francs per bottle of natural juice, yoguort and mineral water will help to finance efforts by government  to protect the environment.

                Also, imported vehicules will now pay extra excise duties according to the ages of the vehicle. Vehicles for private use of above 10 years and those for commercial use of above 15 years are those concerned with this extra excise duty.

                But the new measures do not only impose taxes, it also exonerates some sectors and some economically disadvantaged regions of the country from taxes. Thus the local building materials sector, private education sector and businesses in zones affected by Boko Haram have been exonerated from taxes. Also government has exonerated taxes on salaries of employed youths, TVA for agriculture and livestock equipment and inputs.

                With all these measures and given the modernization of its services it is hoped that the taxation department will meet its 2017 objective and even beat it, as it has been the case in recent past years.