Revenue Mobilisation: Taxation fetches surplus 80 billion

FCFA 885.7 billion has been mobilized for the first quarter of the year as against the projected FCFA 807 billion.

2015 is seemingly brighter for the Directorate General of Taxation, a satellite of the Ministry of Finance in terms of revenue collection. The year is in its second quarter and results obtained are assuring. Information from the Directorate General of Taxation speaks of a rather positive yield.

The Director General, Modeste Mopa Fatoing indicates that the Directorate General of Taxation was expected to mobilise FCFA 1603 billion for the year 2015. The non-oil sector is supposed to fetch FCFA 1403 billion to State coffers while FCFA 201 billion was expected to be sourced as taxes from oil companies.

The Directorate General of Taxation as per the 2015 Law on the State budget was expected to raise FCFA 740 billion from non-oil revenue for the first six months of the year (January to June). The target has been largely surpassed with figures indicating that FCFA 824 billion has been mobilized with a surplus FCFA 84 billion evaluated at 111.3 per cent in relative value.

With regard to tax collection from oil companies, the Directorate General of Taxation can boast of mobilising FCFA 61.7 billion. In all, first quarter projections were set at FCFA 807 billion, and FCFA 885.7 billion has been mobilized as against FCFA 807 billion, representing a surplus of over 80 billion.

Local governments have fetched the State coffers FCFA 73.5 billion as against FCFA 68 billion same time last year, reports say. The Directorate General of Taxation has also raised State revenue worth FCFA 30 billion as against FCFA 25 billion in 2014 from some government offices.

Reforms Payoff

Best practices put in place by the Directorate General of Taxation are to hail for the steady increase in performance. Over 40 per cent of State revenue is tapped from taxes and officials in charge of the department are aware of the stakes. Reforming its tax collection policy was the best choice, going by Modeste Fopa Fatoing.

One of the levers used by the Directorate is to improve tax compliance by modernising procedures for tax declaration and payment. Innovative responses to weaknesses as revealed by the “paying taxes” indicator, a diagnoses used for Doing Business ranking called for urgent measures.

The generalisation of tax payment by bank transfer is a response to fetching more money for the State coffers. Initially limited only to big companies, this mode of paying taxes has been made exclusive and mandatory for taxpayers under major companies and tax centers for Small and Medium-size Enterprises.

The computerised declaration of taxes has also been of help with the Directorate General of Taxation saying it has improved the amount of revenue gotten from taxpayers. Until recently, taxpayers ranked under large offices took out their monthly statements physically and travelling to tax offices in Yaounde.

The constraint has been kept aside with the introduction of a system through which tax payers can take out online statements without having to physically go to tax offices. Since its launch in 2014, the reform has hit a success rate of 92 per cent, information from the Directorate General of Taxation notes.

Pre-filled declaration of taxes has also played to the favour of the department in charge for optimally mobilising resources for the State even though the implementation of the reform is complex. Experts say it is best for tax payers with a mastery of information techniques.

The Directorate General of Taxation however resolved to progressively have it implemented with the pilot phase reserved for the payment of land and property tax. The institution of the pre-filled statement is being complemented by the introduction of payment via mobile phone.

The payment of taxes through the mobile phone (Mobile Tax) has improved service quality with taxpayers appreciating the measure. Initially limited to the payment of property tax, this device has expanded pursuant to the conditions set aside by telephone operators.

The facility like others, has offered the organ in charge of collecting tax revenue to mobilise a reasonable amount for the first six months of the year, counting for the 2015 State budget.