Finance Minister cautions producers on fiscal incentives in 2024 budget

In a speech on January 16, 2024, during the official launching ceremony of the execution of Cameroon’s 2024 State Budget in Maroua, in the Far North region, the Minister of Finance cautioned local producers against the misuse of tax and customs incentives provided by the government. “These measures are by no means intended to enrich producers without impacting prices or to facilitate low-cost production for illicit export to neighbouring countries without prior local market supply. I would like to stress the responsibility that producers bear in the success of this important reform,” warned Louis Paul Motazé.

The Minister’s message primarily targets economic operators in the fishing, livestock, water, and renewable energy sectors, as well as producers of wooden structures. The 2024 State Budget of Cameroon grants a 24-month exemption from customs duties on all imported equipment and materials in these sectors, effective from January 1, 2024, aiming to boost local production.

In line with promoting the local plastic and wood industry, the government has increased the timber export tax to 75% from January 1, 2024, up from 60% in 2023. Importers of coffins and other wooden structures, metal and wooden furniture used in offices, wooden furniture used in kitchens, and plastic furniture will now be subject to a 25% excise duty for each of these products. This measure aims to discourage these imports and encourage the consumption of locally produced goods.

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