Decentralisation: Experts say local tax reforms will boost revenue of councils.

One of such landmark reforms was Law No. 2024/020 of 23 December 2024, on local taxation that properly situated councils within the tax collection chain.

Thus, through a joint ministerial order of May 15, 2026, the Minister of Finance, Louis Paul Motaze and the Minister of Decentralisation and Local Development, Georges Elanga Obam, established Local Tax Monitoring Units, LTMUs across the country.

The decision has in recent weeks provoked varied reactions, with many stating that it is anti-decentralisation. 

Yet, within the corridors of power and among experts, many are pointing to a strategic move to guard against leakages, ensure traceability, data availability and expanding the tax base.

With the joint ministerial decision, they are stating that councils are bound to witness an increase in money raised through taxes, to better meet the needs of the population.

Experts say the reform doesn’t erode the autonomy of councils, which in itself is the raison d’etre of decentralisation. They say advancing decentralisation doesn’t mean State absence at the local level.

Through the reform, they are arguing that the Directorate General of Customs and the Directorate General of Taxation, are rather coming onboard with existing architectures and tested technical competences.

They say it is a new window in the decrentralisation drive, and not recentralisation as critics are screaming. Those hailing the decision of the Ministers of Finance and Decentralisation are referring many to the chaos that held sway before December 2024, when the law on local taxation saw the light of day.

In that era, authoritative sources at the Directorate General of Taxation state that analysis of the finances of councils revealed yawning gaps.

Among the operational inefficiencies, tax authorities are said to have identified technical discrepancies among councils, overlying powers, absence of or imperfect databases of tax payers and manual processing of taxes among others.

Based on such shortcomings, the State, through Taxation and Customs, analysts are saying, is simply stepping in with its competences, to ensure efficiency in the handling of local taxes.

Data justifying gov’t’s decision

It is reported that the Ministries of Finance and the Taxation Department opted for Local Tax Monitoring Units, LTMUs, after reviewing the data from 2024 till date.

Statistics at the level of taxation are said to have shown that in 2024, the amount collected was 404 billion FCFA. When the law on local taxation went into effect in 2025, the amount of money is said to have witnessed a 15 percent increase, hitting 465 billion FCFA.

In the same year, figures are also said to show that Comprehensive Tax yielded 10 billion FCFA, which was paid to concerned councils.

This year, government is targeting 600 billion FCFA in local tax collection. Authorities are said to be counting on reaching the untaxed, expanding the tax base, tightening collection channels and strengthening the tax database.

Merits of Local Tax Monitoring Units

The creation of Local Tax Monitoring Units, LTMUs, which has been the bone of contention, tax experts are insisting, comes with an advantage for local authorities.

LMTUs, they are clarifying, must be welcomed, especially given that they are under the direct control of local authorities. LMTUs, they are also saying, will henceforth give mayors real-time record on local taxpayers, report in outstanding taxes, make reliable projections, collections and assessments.

With this in place, local councils, analysts are making bold, have rather been given the possibility to challenge tax authorities in case of doubt over figures. They add that the reform also makes them technically apt to carry out audits relating to revenue.

Who keeps the revenue?

On the major worry of delays in transferring revenue collected to councils, those with the mastery of the changes at hand, say there is a Secondary Single Treasury Account, lodged at the Cameroon postal Services, CAMPOST.

The Directorate General of Taxation, they are stating, has no control over the money. Authorities are said to have instituted the novelty to address issues of delay in sending collected revenues back to councils. From the account, the money is expected to be transferred to councils in time.

Transition period 

While the changes are taking shape, taxation officials are referencing a March 3, 2026 joint release of the Ministers of Finance and Decentralisation.

They said the directives therein will remain in force. Sources indicate that councils will continue to collect specific local taxes as digital tools are gradually put in place.

Guaranteeing sustainability

Beyond hailing the new State-local-authorities-partnership to tighten the bolts in local revenue collection, the sustainability competent has also been saluted.

Through this, authorities are said to be already working with the National School of Local Administration, NASLA, to train council workers.

These, it is being said, will involve strengthening the skills of local council staff to be able to manage LTMUs, while upholding efficiency.

This article was first published in The Guardian Post Edition No:3804 of Monday June 01, 2026