Economic Actors Propose Cocoa Workers in Cameroon be Financed and Paid

This is one of the suggestions of the Centre for Analysis and Research on Economic and Social Policies of Cameroon …

This is one of the suggestions of the Centre for Analysis and Research on Economic and Social Policies of Cameroon  regarding the measure to apply a 10% exit tax on cocoa beans exported.

The Economic and Social Council (ESC), the Chamber of Agriculture, Fisheries, Livestock and Forestry (Capef), the Chamber of Commerce, Industry, Mines and Handicrafts, the Senate in its capacity as representative of decentralised territorial authorities , and Think Tanks must become more involved in the monitoring and support of cocoa producers and exporters in Cameroon This is the substance of the Camercap-Parc’s “Economic and strategic watch note” published in January 2023.

Indeed, the 2023 Finance Law, the government plans to revalue the tax on cocoa bean exports set at 10%. However, it turns out that the said revaluation aims at reducing cocoa exports in their raw state in order to favour the development of the cocoa value chains. This is seen by exporters as an additional tax burden and by producers as a form of impoverishment of their trade in particular and the rural world in general.

In order to secure and stabilize agricultural and rural incomes, Camercap-Parc proposes two approaches to the agricultural sector. The first is to finance or support the activity through a banking integration model. In this case, the financial institution acquires inputs or tools and distributes them to farmers to ensure the quantity and quality of products.

Through this approach, income taxation could be more fluid and beneficial to all stakeholders. “For the banks, the number of customers increases significantly, as do deposits and banking activity in general. For producers, this model provides a guaranteed and secure income determined in advance. For the State, this model makes it possible to identify producers and thus to establish a file for their multiform support,” reads the report.

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