Tougher tax measures have not significantly deterred the importation of cigars and cigarettes into Cameroon, with figures staying above 2,000 tons.

In Cameroon, the tobacco industry has been facing a series of stringent tax reforms aimed at curbing consumption due to health concerns. Despite these efforts, the importation of cigars and cigarettes has remained significantly high, with over 2,000 tons being imported annually. This situation presents a complex economic and public health scenario that merits a closer examination.

In 2023, Cameroon imported 2,189.5 tons of cigars and cigarettes, costing over CFA14 billion. This figure is slightly lower than the previous year’s, where the country spent CFA17.2 billion on 2,425.4 tons of tobacco products. The decline in imports can be attributed to the revised import duties introduced in the 2020 finance law, which imposed a 30% ad valorem excise duty on tobacco products. The intent behind this taxation was to deter importers and reduce consumption due to the associated health risks.

However, the resilience of import figures above the 2,000-ton mark indicates a robust local demand for tobacco. Various factors, including cultural preferences and the presence of a significant smoking population, could drive this demand. Additionally, the integration of previously informal quantities into formal channels, which were often concealed in smuggling and counterfeiting circuits, might also contribute to the high import numbers.

The Cameroonian government has taken steps to combat smuggling and counterfeiting, which not only affect public health but also result in substantial revenue losses. In 2021, an international tender was launched to procure more secure stickers for products like cigarettes, aiming to curb annual losses of approximately CFA10 billion due to these illicit activities.

The tobacco tax scorecard for Cameroon shows that while the country scores higher than the regional and income group average, there is still room for significant improvements in its cigarette tax system. Increasing cigarette prices and the tax share of the price could be beneficial strategies. Over time, Cameroon’s overall scores have increased, with cigarettes becoming less affordable and the tax structure becoming more optimal.

The ongoing challenge for Cameroon is to find a balance between generating revenue through taxation and reducing tobacco consumption for the betterment of public health. The current taxation measures have shown some effectiveness, but the persistent high volume of imports suggests that further policy innovations may be necessary to achieve the desired public health outcomes.