Cameroon’s new finance law has abolished tax exemptions for private land surveyors, leading to a drastic increase in land transfer fees. This change is expected to raise costs for property developers and inhibit land transactions, drawing strong opposition from surveying unions concerned about the financial viability of their members.
Cameroon’s recent finance law has ignited backlash primarily due to its elimination of tax exemptions for private land surveyors. Under the new 2025 Finance Law, specifically Article 22, private surveyors are now mandated to pay government land transfer fees, significantly raising costs for property stakeholders. Previously limited to CFA50,000 for five hectares, the new fee structure has escalated this to CFA50,000 per hectare, marking a fivefold increase in expenses, particularly impactful in urban areas where extra charges apply.
The government defends this adjustment by asserting that the new fees will enhance non-tax revenues essential for sustaining administrative structures related to land management. However, many industry professionals warn that this paradigm shift may hinder land transactions and deter property ownership, especially for small-scale investors. This growing concern points towards the potential stagnation of real estate growth in the nation.
The National Union of Surveyors and Topographers of Cameroon (SNGT) has issued a stern rebuttal against these changes, citing threats to the financial stability of private surveying firms. Their correspondence to the Minister of Finance on January 14 indicated that the supplemental costs could cripple many small businesses reliant on surveying services.
Surveyors emphasize that these land transfer fees encompass vital services such as site inspections, land measurements, and official mapping, traditionally managed by private firms prior to final government validation. The new legislation now requires them to match fees of public land registry officials, despite independent firms not utilizing government resources effectively during their processes.
The consequences have been immediate within the real estate sector. For example, Alain Moungang, president of the Cameroon Association of Real Estate Developers (APIC), revealed a case involving a planned 50-hectare housing project. Originally budgeting CFA17.5 million for topographic studies, the developer now faces expenses of CFA34.9 million for land transfer costs alone, necessitating an increase in property prices from CFA10,000 to CFA12,000 per square meter to accommodate rising expenditures.
Surveyors criticize the fee structure for being overly burdensome, with costs now being 200% to 300% higher than original surveying expenses. Narcisse Cali Chikangwa, president of the SNGT, cautioned that if these trends continue, numerous small firms could be forced out of the market, significantly inflating the costs for land services directed at consumers.
Private surveyors are further distressed by perceived unfair competition from government officials, who leverage public resources while competing directly in the same marketplace. This imbalance raises serious concerns about equal opportunities within the industry, as independent firms struggle against state-backed entities.
The SNGT is advocating for a reversion to tax exemptions for private surveyors, suggesting they should only be responsible for standard stamp duties. They have reached out to Finance Minister Louis Paul Motaze to promote a more equitable policy that supports both the sustainability of surveying firms and governmental revenue goals. “We strongly believe that a balanced reform is possible—one that not only safeguards our profession but also strengthens public finances and improves land management efficiency,” stated Chikangwa.
In summary, Cameroon’s new finance law imposing land transfer fees on private surveyors has provoked significant criticism due to its financial implications for property owners and developers. The National Union of Surveyors is adamantly opposing the changes, citing potential harm to small surveying firms and overall market competitiveness. Calls for a balanced reform seek to ensure fair taxation that protects private sector interests while still meeting state revenue objectives.
Original Source: www.businessincameroon.com
