Mobile Money tax: BEAC Suggests Taxing Electronic Money Could Discourage Financial Inclusion

By Augustine Nyuykongi
The Bank of the Central African States has warned countries of the CEMAC region that taxes imposed on electronic money may slow down financial inclusion.

BEAC has proposed that “States, Payment providers and BEAC must have a global and converted economic approach whose aim will be to allow a broadening and a change in the state’s taxation strategy without penalising the development of electronic payment activities but instead boost the level of financial inclusion…”

These declarations from BEAC has come at a time when Cameroon is experiencing a steady increase in the cost of mobile money transactions.

Related: https://ginainforms.com/cameroons-new-mobile-money-tax-sets-off-an-outcry-endmobilemoneytax/

On January 01, 2022, another 0.2 percent of tax was added to every mobile money transactions through all operators in Cameroon.

To BEAC, should such a taxation policy follow such a consistent trajectory, the mobile money sector could be hindered, therefore affecting financial inclusion.

The tax increment according to the Director General of Taxes in Cameroon, will fetch the Government an additional FCFA20 billion to swell the state budget.

Cameroonians have however criticised the implementation of this tax, and have been making their discontent clear on social media.

Fabrice Lena, Secretary General of the Popular Action Party has launched a 28 days activism against the 0.2% tax on mobile money transactions on social media.

He hopes cameroonians will use this opportunity to show their discontent publicly on the social media.

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