According to Cameroon Radio and Television Channel, CRTV, they tweeted earlier indicating the fact that International money transfers via Western Union and Money Gram have become disrupted. These operators refuse to be taxed on their commissions.
They also added that According to the financial law of 2015 it required that the levies of the operators on these transfer agencies were to be taxed. They however strongly oppose it.Local financial institutions, partners of Western Union and Money Gram, are therefore exposed to the tax risks associated with these transfers.
According to an article published by cameroon-Info.net in 2015 concerning the tax commissions,
“In the 2015 Finance Act, the State of Cameroon taxes in its entirety the international transfers that leave Cameroon,” says Chrétien Tabetsing. According to one banker, the newspaper said, “everything that comes out of Cameroon must be taxed at 33.33% on expenses”. This tax of 33.33% is deducted from the commissions earned by the international transfer companies and their partners during the transfers of money. However, Le Quotidien de l’Économie reveals that these companies receive 20% on these commissions. “And so, when we return 33.33% while we only receive 20% of Western Union, we are the losers. This is a real shortfall for us because we pay more than what we receive from our partner, “explains the banker, who also adds that” Western Union, which is our partner, has not commented on this situation , And that is why we decided to stop hoping that a compromise will soon be found”. According to the banker, it will be arduous that the situation improves, because banks will hardly accept that all commissions are taxed. This could lead to the closure of the Western Union and Moneygram departments in the banks and microfinance partners”.
Like it was assumed in 2015 by cameroon-info.net, are the money transfer agencies actually coming to a close because they don’t agree with the commission tax levied on them
See tweets from CRTV..