Author: Centurion Law Group, Cameroon Team.
This month is dedicated to introducing the innovations of the new 2022 Finance law in Cameroon. This discussion is centered on the review of fiscal measures put in place to broaden the tax base which in effect ameliorates the business climate in Cameroon. Parts 1 & 2 of this piece introduced the new finance law of 2022 and encapsulated the regulatory framework of the law and its effect on the fiscal regime and some commercial sectors like the oil sector, Maritime transport companies, and financial companies, and the Agricultural sector. Part 3 continued with the discussion of the general measures that have been introduced by the new finance law. These measures include; The institution of the new tax on money transfers . Part 4 of this piece is dedicated to discussing the fiscal measures related to import and export operations.
IV- FISCAL MEASURES RELATED TO IMPORT AND EXPORT OPERATIONS
Within the framework of import-export operations, the new finance law has focused on the forestry sector, the agricultural sector, livestock farming, human health.
- The Forestry sector
Given the entry into force of the ban on the export of logs in the CEMAC zone in January 2023, the new finance law sought to support forestry companies in this transition by granting an exemption from duties and taxes on the import of equipment intended for the advanced processing of wood; at the same time, while awaiting the future ban, the finance law raises the rate of export duties on logs from 35% to 50%.
- The agricultural sector
The new finance law provides for the exemption from customs duties and taxes on the import of certain capital goods and seeds intended for agriculture, with the aim of encouraging and enabling the increase of agricultural production. It also exempts export duties on pepper and honey (previously 2% for honey and 5% for pepper), and taxes the import of certain agricultural products which are nevertheless present in Cameroon in sufficient quantity; this is a measure that protects local producers.
- The breeding sector
The new finance law provides for the exemption of customs duties and taxes on the importation of certain goods and equipment intended for breeding: improved animal seeds, medicines and vaccines for veterinary use; this measure comes in the face of a national shortage of breeding products. The aim is therefore to encourage breeders and boost animal production to better supply the population with livestock. It is this measure that explains excise duties on luxury foods..
- The human health sector
With the new finance law, this sector is exempt from customs duties and taxes on the import of certain goods and products intended for human health such as medical devices, equipment and consumables, vaccines for human medicine, software for medical use, etc. These exemption measures are taken with the aim of allowing hospitals to improve their technical platforms, to reduce the cost of health care for low-income populations
Under the 2022 Finance Law, the Cameroonian tax system has been expanded from 3 to 4 tax regimes, with the introduction of the tax regime for Non-Profit Organisations.
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