Evaluating the incidence of indirect tax reforms in Cameroon

Abstract

Poverty levels in Cameroon had been relatively high following the onset of the economic crisis in 1986. In 1996, more than 50 per cent of Cameroonians were poor, as against 40 per cent in 1983/84. However, the 2001 survey on household living standards indicates a declining trend with approximately 40.2 per cent of the population affected by poverty. Unfortunately, this global improvement is characterized by a slight chance in inequalities between the various income groups of the population. Between 1983 and 1996, income inequality moved from 0.49 to 0.44 and subsequently to 0.41 in 2001. The indirect tax structure has a role to play in inequality reduction policies. Using the 1983/84, 1996 and the 2001 Cameroon household surveys, this study reveals that the indirect tax reforms of 1994 and 1999 have been generally prop-poor. African Journal of Economic Policy Vol. 10(2) 2003: 1-29