Cameroon’s President Paul Biya has signed Circular No. 001, setting out the guidelines for preparing the 2027 State Budget. The circular outlines the expected economic environment, the government’s spending priorities and the principles that should guide budgetary policy. It also gives public authorities practical instructions for preparing their 2027 budget proposals.
Tax Policy Direction
Although the document contains no specific VAT measures, it sets the direction of tax policy, including VAT. Cameroon’s 2027 tax policy will focus on increasing domestic tax revenue by broadening the tax base, improving revenue collection and strengthening the fight against tax evasion and fraud. The government intends to achieve this through a combination of sector-specific tax measures, digitalization, and more effective tax enforcement.
To broaden the tax base, particular attention will be given to extractive industries, especially gold mining, which the government considers to have significant untapped revenue potential. The objective is to increase the sector’s contribution to both the State budget and local government revenues.
The government also plans to continue rationalizing tax expenditures in line with the revised Central African Economic and Monetary Community (CEMAC) Directive, which, among other things, harmonizes VAT across member states, and strengthen environmental taxation in accordance with Cameroon’s international commitments.
To secure tax revenues and improve collection, the authorities will expand electronic production monitoring systems in sectors with significant revenue potential or a high risk of under-reporting. They will also continue implementing real-time taxation and gradually extend its application, while expanding e-invoicing to improve the traceability of taxable transactions. Additionally, limiting cash payments is intended to improve the taxation of informal economic activities and bring more transactions into the formal tax system.
Cameroon also plans to strengthen tax audits and enforcement against fraud and evasion through greater use of data to identify previously unregistered taxable persons, improve the accuracy of tax bases and reduce the tax gap. Enforcement will increasingly rely on risk-based targeting, international tax cooperation and improved technical capacities among tax control authorities.
Supporting Measures
To achieve these objectives, the government plans to strengthen taxable persons’ rights and safeguards, particularly by ensuring effective and timely VAT credit refunds to protect businesses’ cash flow. It will also continue improving tax communication and taxable persons' education, while reviewing tax rates, especially those applicable to employment and capital income, to make the tax system more rational.
Conclusion
Specific tax measures will become clear once Cameroon’s 2027 Finance Law is adopted. Until then, the circular indicates the government’s intended direction: rationalizing tax exemptions, broadening the tax base, strengthening collection, and aligning domestic legislation more closely with CEMAC requirements.
