0.2% Mobile Money Tax Hits Cameroon

Cameroonians started the New Year when the mobile money operators sent them a reminder of the particular tax, which is a new tax introduced to them early this year.

That tax is the 0.2% Mobile Money tax, which is expected to be levied on the transfer and withdrawal of money via the platform.

One network provider circulated the following message to subscribers:

 

A leading business news portal, Busines in Cameroon, summarized the tax as follows:

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“According to the 2022 finance law, the tax applies to transactions carried out through all the traceable technical platforms (like internet, mobile phone, wire order, telex, fax) except for bank transfers and electronic transactions carried out to pay tax and customs duties. The tax will also be applied to cash withdrawals from financial institutions or mobile telephony operators,” it added.

On social media, Cameroonians are livid at the tax with the reason that the mobile money component in particular was unfair in many ways.

One of the key voices against the tax is Rebecca Enonchong, a leader in African tech ecosystem, who tweeted as follows:

“Can you imagine being charged a tax to withdraw your own cash out of your account? For millions of Cameroonians who hold their money in mobile money wallets, this became a reality on Jan.1. This tax is regressive and will slow financial inclusion. #EndMobileMoneyTax. #WeSayNo.”

 

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Arrey Ntui, a security analyst with the Crisis Group also highlighted the draconian nature of the tax via a tweet:

“Cameroon should pursue financial inclusion as cost of living skyrockets. The mobile money tax unfairly punishes Cameroon’s poorest people. Cheque and bank transfers have no similar tax. Over four million humanitarian aid needers rely mostly on mobile money,” he added.

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