Digital Tax Policy and Tax Revenue Collection in Cameroon
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Date
2023-12Author
Derrick, Fossong
Mc Moi Ndi, Ashu
Santoro, Fabrizio
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Abstract
Many African countries have made significant progress in
digitalising tax administration. Recent research has shown
promising evidence around the impact of digital solutions,
such as electronic filing, on tax compliance and revenue
generation. Very little, however, is known about how
digitalisation could strengthen local tax administration,
and how subnational government levels could benefit
from broader national digitalisation reforms. The case of
Cameroon illustrates how local tax administrations can
struggle to benefit from technology.
The digital tax policy (DTP) was adopted in Cameroon
in 2014 and went fully into effect in 2016. The reform
introduced an online declaration and payment system,
accessible through the web portal of the Directorate
General of Taxes (DGT), the national tax administration.
The reform also heavily focussed on pre-filling tax
returns. With the information it has on taxpayers’ business
activities, income and assets, the tax administration
automatically issues a pre-filled tax return form. In turn,
taxpayers, accessing the pre-filled form online, only have
to confirm the information on it if they find it is accurate. If
not, they have to amend the form online. Further, the web
portal permits taxpayers to make their payments digitally,
through a bank or electronically. Summary of African Tax Administration Paper 33.