The intensification of environmental degradation, marked by rising pollution levels, the depletion of natural ecosystems, and the growing urgency of climate commitments has compelled states across the globe to devise regulatory frameworks capable of reconciling economic activity with ecological imperatives. Environmental taxation has emerged as one of the most effective instruments in this endeavour: it simultaneously disciplines polluting behaviour through a price signal and generates fiscal revenue for public investment in sustainable development. In Cameroon, this policy orientation is anchored in the National Development Strategy 2020–2030 (SND30), which calls for a progressive greening of the country’s fiscal architecture. In this respect, the 2026 Finance Law (FL 2026) introduces a dedicated environmental tax, codified under the new Articles 228-7 to 228-10 of the GTC, and further elaborated by point 4 of the circular precising the implementation modalities of the said law. The reform pursues a dual objective: strengthening public revenue mobilization and institutionalising producer
and importer accountability for the ecological externalities generated by high-impact products. This article provides a descriptive and expository analysis of the new levy’s legal framework, addressing, in turn, the determination of its scope of application (I) and the mechanics of its assessment and collection (II).
I. Scope of Application of the Environmental Tax
The environmental tax is a targeted levy: the fiscal legislature has expressly delineated both the products subject to it and the persons liable for its payment, leaving no residual discretion to the tax administration.
Concerning taxable Products, Article 228-h of the GTC, the environmental tax applies to products whether manufactured domestically or imported that present a significant ecological footprint. This article targets cement; reinforcing steel; tiles and ceramics; non-returnable packaging; and plastic products other than packaging. The selection of these products is not arbitrary. Each represents a sector whose production cycle or post-consumption residue generates substantial natural resource consumption, carbon emissions, or environmental pollution. The explicit reference to the polluter-pays principle as the normative foundation of the tax signals the legislature’s intent to internalise the ecological costs borne by the community into the price structure of these goods thereby incentivising producers and importers to adopt greener production methods or sourcing practices over time.
Pertaining to persons liable, a combined reading of Article 228-j (1) of the GTC introduced by the FL 2026 and point 4.3.2 page 68 of the circular precising the implementation modalities of the said law identify two categories of liable persons that natural persons or entities. The first comprises local producers, defined broadly as any industrial or artisanal unit established on national territory that manufactures, transforms, or assembles the targeted products including units that package their goods in packaging procured from third parties, irrespective of whether the unit itself produces such packaging. The second category encompasses importers, meaning any person who introduces the listed products into national territory under the customs regime for home consumption. Both categories of liable persons bear full procedural obligations declaration and payment as prescribed by law.
II. The Assessment and Collection of the Environmental Tax
The FL 2026 establishes a differentiated assessment framework that calibrates the tax base, applicable rates, and payment and declaration modalities to the specific nature of each product category.
For Tax Base and Applicable Rates, under Article 228-i of the GTC, as clarified by point 4.1.3 and 4.1.4 of the circular precising the implementation modalities of the FL 2026, the tax base varies by product. Three distinct methodologies apply: For Cement, reinforcing steel, and tiles: the tax base is the total net weight in tonnes, as evidenced by weighing slips, sales invoices, or customs declarations. The applicable tariffs per tonne are: FCFA 2,500 for cement; FCFA 5,000 for steel; FCFA 10,000 for locally produced ceramic tiles; and FCFA 15,000 for imported tiles and ceramics. No ceiling applies. Concerning non-returnable packaging: the tax base is the number of physical units. In cases of grouped packaging, the tax applies to each individual container bottle, flask, or can. The tariff is FCFA 15 per unit (uncapped) for packaging used for alcoholic and carbonated beverages, and FCFA 5 per unit for all other packaging, subject to a ceiling of 5% of the product’s ex-tax value. Plastic products (excluding packaging): the tax base differs according to origin. For imports, it is the CIF value (Cost, Insurance, Freight) as assessed by Customs for the purpose of calculating import duties. For locally produced goods, it is the ex-tax selling price, net of all trade discounts, rebates, and allowances stated on the invoice. In both cases, a rate of 5% applies, capped at FCFA 1,000 per unit of product.
In relation to Payment and Declaration modalities, Article 228-j (2) of the GTC as introduced by the FL 2026 establishes bifurcated collection mechanisms that track the origin of the goods. For domestically manufactured products, the tax is self-assessed and the liable taxpayer must file an online return using the prescribed form and remit payment spontaneously by the 15th day of the month following the month in which the taxable event occurred.
The tax is due at the delivery of goods. For imported products, assessment, declaration, and collection are delegated to the Customs administration, acting on behalf of the Public Treasury. The tax is levied concurrently with applicable import duties, with the tax being due at the crossing of the customs border. The new regime applies to all transactions carried out from 1st January 2026 onwards. Liable parties were required to file their inaugural return no later than 15th February 2026.
Conclusively, the environmental tax introduced by the 2026 Finance Law represents a meaningful step in the alignment of Cameroon’s fiscal policy with its environmental commitments. By targeting products with a high ecological footprint and establishing clear mechanisms for determining the tax base and applicable tariffs, the tax legislature demonstrates its intention to hold economic actors accountable in accordance with the polluter-pays principle while simultaneously ensuring the mobilization of public revenue.
Author: Yves Bertrand Abena, Associate Consultant; Supervisor: Albert Désiré Zang, Managing Partner