The law on the local tax system in Cameroon is all about taxes, royalties and levies that are collected by the decentralized structures of the state. This includes the regional and local authorities. It applies to councils, sub-divisional councils, city councils, regions and other types of local and regional authority that may be set up according to the law.

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Book Three Part I Section C. 2 of the General Tax code of Cameroon states that “Any revenue collected by State or competent taxation services of regional and local authorities for the latter [Section C.1] shall be considered as local taxes. All revenue collected shall still be referred to as “local taxes”.”

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The regional or local authorities have the responsibility in the management of the levies or taxes that comes to them. The tax authority shall deduct 10% of all taxes collected on behalf of the local authorities and public bodies as collection and assessment fees.

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The collection rates of such taxes and levies from the local fiscal systems shall be fixed by the legislative body. This is usually done in compliance with the bracket provided for by the law.

Proceeds from some of the local levies and taxes are subjected to equalization in solidarity with all local and regional authorities. This is done in order to have a harmonious development for all local and and regional authorities. This is done following conditions and criteria put in place by the laws and regulations.

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The state makes sure that the local taxes collected under same conditions as those of the state. Except in the case where there is a special provision for this law. The state also makes sure that what is collected annually from council taxes proportionate to the established rate as a ration of its level of tax resources.

Some of the local taxes are issued and collected by the state (Directorate General of Taxation) and its organs for the benefit of local and regional bodies include:

• Business Licenses

• Liquor licenses

• Discharge Tax

• Property tax on landed assets

• Gambling and entertainment levy

• Immovable property conveyance

• Automobile stamp duty

• Forest royalty

• Stamp duty on advertising

• Tourist tax

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