Minister wants MPs to raise import tax to protect local businesses

Alamine Ousmane Mey, Minister of Finance, has urged Members of Parliament to approve the imposition of a high tax on imported rice and cement so as to protect local industries and curb abuses being perpetrated by dealers in these commodities.

The minister made the call as he defended the budget for his ministry and affiliated departments for the coming year at the National Assembly.

Alamine disclosed that a tax on the importation of rice existed prior to March 2008. That year, he said, government was forced to remove the tax after a nation wide protests over the cost of living at the time.

He said the removal of the tax opened the floodgate for indiscriminate importation of the commodity into the country, to a point where the local market is presently flooded with two times the quantity of rice that Cameroonian consumers need.

The minister added that it has led to indiscriminate smuggling of rice to neighbouring countries. “Cameroon now imports some 800,000 tons of rice whereas her annual consumption is barely half of this quantity.”

Alamine described this as an abusive use of the tax-free facility allowed by the government to enable the population have enough to eat, adding that most of the excess rice is smuggled out and sold for higher profit in neighbouring countries.

“Much of the excess is smuggled out and sold in Nigeria through the North, Far North and South West Regions while some are smuggled through the East Region and sold in Central African Republic,” the minister disclosed.

He urged parliament to approve a tax on imported rice to the tune of 5%.

For cement, Alamine recommended a tax of not less than 20% per bag on whatever quantity any business man wants to import. He said that with the inauguration of three new cement companies in the country, there was no longer a need to import this commodity if local industries must survive.

Like in the case of rice, the minister said the tax on imported cement was removed some time ago so as to enable the commodity be available at a cheap price to local builders.

Alamine also urged parliament to approve a tax of 10% on imported clinker, a building derivative of cement. He concluded that without these taxes, competition will remain completely in the disfavor of local producers.