To boost sales, environmental protection: Gov’t exempts tax, excise duties on electric vehicles.

File picture of electric cars

The Directorate General of Taxation at the Ministry of Finance has offered a tax and excise duties exemption on electric vehicles. The move is meant to boost sales and support environmental protection through the fight against pollution.



The information is the content of a recent document made public by the Directorate General of Taxation, indicating the exemption set to begin from January 2025.

The vehicles exempted from excise duties previously had an import rate of 12.5%. The exemption will witness a 50% reduction in the taxable value of the newly imported electric vehicles, motorcycles, their batteries, and charging stations will also be included for the next 24 months.

According to the document from the Directorate General of Taxation, the government aims to encourage the purchase of electric vehicles by lowering taxes on these clean vehicles, in contrast to more polluting thermal vehicles.

Through the exemption, the government intends to promote the use of electric vehicles in the transport sector, in order to support environmental protection through the fight against pollution.

The push for electric or hybrid vehicles to be used in Cameroon’s transport sector is supported by car dealer, 3S Motors, and the French energy giant, TotalEnergies.

Speaking on the introduction of the electric vehicles in the country, the Managing Director of TotalEnergies Marketing Cameroon, Patrocle Petridis, said “this will help maintain the state’s purchasing power, make it easier for Cameroonian consumers with low incomes to access new vehicles, and improve road safety”.

In 2023, the two partners established the Cameroon Electric Mobility Promotion Association, known by its French acronym, APEME-CAM, to equip the country's road network with electric vehicles both 4-wheel and 2-wheel, starting in 2025. 

APEME-CAM was set up with objectives to encourage the mass imports of electric vehicles and support local entrepreneurs’ initiatives in this sector. 

The introduction of these electric vehicles will include the availability of electrical power, and electric vehicle charging stations to enable the smooth functioning of the cars with three already present in Yaounde and Douala.

While many have lauded the gesture by the government, others worry about the lack of testing and approval for these vehicles, the absence of technological options for charging infrastructure, and the need for training professionals on the technical aspects of electric vehicles, charging stations, and batteries.

 

This story was first published in The Guardian Post Edition No:3340 of Thursday January 16, 2025

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