There are indications that the new Finance Bill enacted by the government of Cameroon will dampen enthusiasm over the prospects of mobile money growth in the country. According to the letters of the Bill, from January 1, 2022, a 0.2% tax on the transfer and withdrawal of money via mobile wallets came into force.

The Bill which was signed by President Biya last November applies to all transactions made through traceable platforms, including mobile telephony and the internet, with the exception of bank transfers and electronic transactions carried out to pay tax and customs duties.

In other words, people using money transfer platforms will incur additional fees of 0.2% when sending and 0.2% when withdrawing. That means a total of 4,000 XAF ($7) will be charged in taxes on the transfer of 1 million XAF ($1,725) between two Cameroonians.

Read also : Togolese Super App, Gozem, Expands To Cameroon, To Offer Fintech And Ecommerce Services

These taxes, expected to add more liquidity to state coffers, are in addition to existing charges on mobile money transactions in Cameroon which users already complain about. 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry