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Broadening tax base: New measures enforced.

According to the new measures, the Unique identification Number issued by the Taxation Department will be required when opening the bank account, subscribing  to a social insurance scheme, as well as signing up for water and electricity supply. The new measure, tax offices explain, enables the Taxation to have a full knowledge of the taxpaying population. This comes after a few weeks after the Director General of Taxation, Modeste Mopa Fatoing, signed a communiqué, strengthening the tax identification system. The new measures have been introduced on the strength of the 2020 finance law which gives the department the leverage to take such moves.

According to the Head of the Legislation Unit at the Taxation Department, Fayçal Abdoulaye, the step would be beneficial to both the state and the population .“The advantage of being able to identify all our taxpayers is a part of a process to broaden the tax base through the census of new taxpayers. In fact, by targeting the current economic operations carried out by taxpayer, the tax administration gives itself the means to have a database on all potential taxpayers,” the Legislation Unit  Head said.

Experts have said the move will fetch the state some more money as tax evasion is likely to be significantly dealt with. “If for example you request for an ENEO connection, this assumes that you have a home, so you have to pay property tax; if you have a bank account, it presupposes that you have some income. Some   of that income probably exposes you to a tax. So this approach also aims at identifying our taxpayer’ file”, a taxation expert elucidated.

Salaried workers who didn’t have the number have been assigned one. The taxation boss, in the communiqué, urged workers of both the public and private sector consult the department website for updates. The Taxation Department has changed gears in its drive for dematerialization. This new crusade to reinforce the use of Unique Identification Number is not disconnected to ongoing efforts to digitize the tax system.

This step, along with other measures to eliminate tax expenditures, also seeks to scale up the nation’s gross income. And of course enable it foot its bills. Recall, tax revenue is one of the major budget lines that gives hope to the 2020 State Budget.

Culled from Cameroon Insider