Infos Business of Saturday, 24 January 2015

Source: The Sun Newspaper

South West tax dep’t poised to beat FCFA 8.97 bn target

The new regional chief of centre for taxation in the South West, Lihinack Josue, has elaborated strategies not only to achieve the expected target in terms of revenue collection for 2015, but to go as far as beating the target.

Lihinack Josue was speaking exclusively to The SUN last Thursday, January 15 in his office besides the Community Field.

Amongst other issues, he assured tax payers that they will not be exploited and that stringent measures have been put in place to combat embezzlement of tax payers’ money adding that as from February ending, there shall be mixed tax controls in the region.

It is a deep and revealing interview; he spoke to THE SUN’s Editor, TARHYANG ENOWBIKAH TABE AND INTERN, NARDEGE WASSO. Rread on…

Thanks for accepting to speak to THE SUN NEWSPAPER and welcome to the South WEST Region; let’s begin by asking you how you feel being the Regional Chief of Taxation for the South West?

You are welcome, I want to say I am glad to work in the South West; I have discovered a very good place; I am very happy to be here.

Talking about the 2015 Finance law, what do you make of it?

It is a matter of policy that each year we need to modify our tax law to be more efficient. Hence as far as 2015 is concerned we have tried to make it better to collect more taxes. The state has a lot of expenditure so we need to raise the money to cover state expenditure. The 2015 Finance law empowers the taxation department to continue collection of taxes, contributions, royalties, proceeds, and public revenue in accordance with the instruments in force, subject to the provisions of the law.

The Law has increased estimated revenue collection from FCFA 2, 703, 000, 000, 000 to FCFA 3, 022, 483, 000, 000 in terms of tax revenue, giving an increase of 319, 483, 000, 000 in real figures and 11.8% in relative value.

To face the increase in tax revenue, the Finance Law has new measures aimed at broadening the tax base in the spheres of direct and indirect taxes.

What are the objectives assigned to the Directorate General of Taxes and to the South West Regional Tax center in particular for 2015? Concerning tax revenue, the Directorate General of Taxes is commissioned to collect FCFA 1, 756, 910, 000, 000 of which the South West Regional Tax center is expected to collect FCFA 8, 970, 300, 000 in terms of budgetary revenue, giving an estimated collection rate of 0.51%.

This means that our target has been increased; last year the South West was expected to rise the SUN of FCFA 7.1 Billion but in 2015 we are expected to collect close to FCFA 9Billion as far as budgetary revenue is concern.

Why this increase in expected income from tax from the South West?

It is because the Government needs money to accomplish the greater achievement programmes of the Head of State. The state has a lot of projects to accomplish and as time goes on it is but normal that, the needs of the state get higher and higher.

What are the actions and strategies envisioned by the regional center to attain the assigned objectives in 2015?

Actions envisioned are in accordance with the duties of tax authorities taking into account the new measures of the 2015 Finance Law. We shall ensure that all taxpayers eligible to file in returns do so respecting the time frame that is for annual returns: Global tax, not later than April 2015; Business license, not later than 28 February 2015; Property Tax, not later than 30 March 2015; Statistics and Tax Returns, not later than 30 March 2015, for monthly returns, not later than 15 of every month.

Other measures will include follow up defaulters by reminding them of their obligation to file in, make sure those taxpayers who do not file in returns after reminders are taxed by best judgment, intensify recovery of pending debts, by using all the legal measures of recovering taxes as defined by the General Tax Code, carry out controls and audit of taxpayers at different levels using the provisions of the new finance law and the General Tax Code in general.

Our services shall be available always for the services of stamp duty. The windscreen licenses popularly known as vignette are available and should be obtained before the end of February 2015.

Vehicle owners should also be reminded that stamp duty on motor vehicles is fixed as follows: Motorcycles, 2 000francs, Vehicles of 2 to 7 Horse Power, 15 000francs, Vehicles of 8 to 14Horse Power, 25 000francs, Vehicles of 15 to 20 Horse Power, 50 000francs, Vehicles of more than 20 Horse Power,100 000francs.

We shall also track down all the businesses operating clandestinely and when all measures for collecting taxes are fully exploited by the tax officials called in their different capacities and abilities, in the collection of the assigned objective, the South West shall not only realize their objective but beat target.

We have put in place what we call the Medium Sized Enterprise Tax Payers Office, this unit will follow up all tax payers in the Actual Regime with a turnover of more than FCFA 50 Million; it means that we are putting a place modernized structures to follow up the tax payer at the level of the structure.

The Finance law has also changed the assessment of company taxes and the running of excise duties and we want to do our best to follow up ghost taxpayers.

We also have to enhance our means to be sure that when a tax payer comes and pay money, the money is kept in the state coffers, not embezzled.

This is not new in your service, what anti corruption and embezzlement strategies are in place to check those taxation workers who enrich themselves by exploiting others?

It is a daily fight and we are promoting good governance; we are making lots of internal control; tax payers need to insist to get their receipt after paying.

Those who are tax payers at the medium sized unit do not pay cash but by bank transfer so embezzlement can be avoided.

What is the relationship between the regional tax center and local councils?

We have a good relationship, there is a lot of collaboration since and we hope that in 2015, this collaboration will yield fruits for the council.

The law states that new companies can operate for some time without paying taxes, is it the case in the South West?

It is very effective; it is a helping hand to those who are beginning, they have two years to operate without paying their business license, but the law of 2015 has changed.

For the first year there will be no cost but for the second year, when the tax payer has gone through a registration process, he or she gets another free year, if not, the second year is paid. The idea is for Cameroonians to create more companies.

What is the situation of the tax roll of the southwest region?

The tax roll of the Region is configurated in assessment systems or regimes, in function of taxpayers’ turnovers. Tax payers of the Actual Assessment System are those having turnover of FCFA 50million and above, and are managed by Medium Taxpayers’ Office. The South West boasts of 529 such taxpayers.

Taxpayers of the Simplified Assessment System are those with turnover brackets of FCFA 10million and FCFA 50million, managed by Divisional Tax Centres. We have 2,046 taxpayers in this regime .The bulk of taxpayers in the region are of the discharge tax and they are more than 6 317. There are also some businesses that have not registered with taxation.

What message do you have for South West tax payers?

First of all, I want to wish them a happy new year while hoping that their businesses will be better than in the past. They must be aware that they have to renew their duties and there is a deadline for business licenses to be renewed which is the February 25. Owners of lands have to help their councils by paying the land tax whose deadline has been fixed for February 30.

We all have to be good citizens by helping the state and the community. Car owners on their part have to pay licenses and the deadline for this is the 1st of February. On our part, we will run many controls by the end of February together with the police officers. Therefore I advise everyone concerned to come to the various departments to pay their dues and I wish them the best in 2015 as far as business is concerned.