The 2026 Finance Law in Cameroon marks a fiscal shift for owners and importers of used vehicles. The government has decided to increase excise duties on older vehicles, a measure that is expected to significantly impact the automotive market. The main objective is to modernize the national vehicle fleet, deemed too outdated, while increasing state tax revenues.
Specifically, the law introduces a new tax scale based on the age of the vehicle. Cars older than 12 years and up to 20 years will now be taxed at 12.5%, while those over 20 years will see their excise duties rise to 25%. Previously, a uniform rate of 12.5% applied to vehicles from 0 to 15 years. This change particularly targets importers of used vehicles, whose business model relies on acquiring cheap old cars.
The aim of this measure is to encourage buyers to turn to newer vehicles, thereby reducing the number of "rolling wrecks" on Cameroonian roads. The authorities also hope to encourage the acquisition of electric vehicles, considered more environmentally friendly. In 2019, the government had already removed customs duties on vehicles under 10 years old from the European Union.
However, this new law raises concerns. Importers fear a drop in import volumes and a rise in prices on the domestic market. Some experts believe that vehicles already in Cameroon will increase in value, making the purchase of used vehicles even more difficult for the middle class. A specific tax on the car's technical inspection will also be created to finance actions for the benefit of people with disabilities.
Beyond taxes, the Cameroonian government seeks to diversify its sources of income while encouraging a greener economy. Vehicles powered by compressed or liquefied natural gas (CNG and LNG) will benefit from a 0% excise duty rate, regardless of age. It remains to be seen whether these measures will be enough to sustainably modernize the Cameroonian vehicle fleet and improve road safety.
