COVID-19: Concertation With GICAM, Public And Private Entities Have Yielded Fruits

The President of the Republic through Prime Minister Dr, Joseph Dion Ngute, has set up accompanying measures geared at appeasing most of the SME, petite traders as well as vulnerable households cushion the shock caused by the impact of COVID-19.

The timing could not have been much better than the eve of May 1, 2020, “The International Labour Day” when workers in Cameroon and the world over ought to have been celebrating the lone day they are commemorated for the job and services rendered. Unfortunately the corona virus pandemic deprived workers of the traditional celebrations.

Nontheless, the decision by the President of the Republic, H. E. Paul Biya to dish out accompanying measures to businesses mostly impacted by the pandemic was highly welcomed. Trade Unions, Businesses, Households, and some Government entities like the Social Insurance Fund welcomed the nineteen measures, and CFAF 25 billion from President Paul Biya with ecstasym.

But, it was not a coincidence that President Paul Biya’s, decision through Prime Minister, Dr. Joseph Dion Ngute to unveil the nineteen relief measures to cushion the economic shock already felt by some economic sectors of Cameroon (hotels, restaurants, catering services, etc.) on the eve of Labour Day, were made public.

Even though the COVID-19 pandemic stole this year’s celebrations, the uplift of the ban on bars, taxi, restaurants while respecting the facial mask and social distancing could not be underestimated. People flunked to bars and restaurants to celebrate the International Labour Day with friends coworkers and family members.

GICAM Needs To Be Applauded

The Inter-Patronal Grouping of Cameroon (GICAM ) was amongst the first Institution to raise concerns after their Extraordinary Board Meeting in Douala, on March 19, 2020, about the perceptible impacts of the coronavirus on certain companies in Cameroon.

This is what sent signals to the Government about some measures that needed to be taken the soonest, to aid SMEs and some big enterprises. In an official release published after the Extraordinary Board Meeting, the institution mentioned that COVID-19 could not only lead the country to a real economic crisis, but also a social and human disaster. ln the results of a 20 page survey, while stating the gravity of the economic implications, they also suggested a couple of tax breaks on SMEs, small traders as well as big business enterprises, the urgent use of all monetary, fiscal and trade policy, as well as the elaboration of new public policies to support businesses and households so that the war against the corona virus could be won.

Government Respond With 19 Relief Measures

After government’s initial measures taken on March 17, 2020 (closure of schools and borders, without prejudice to trade, suspension of missions abroad, economic impact of the health crisis on Cameroon, and some proposed solutions. In the report it was revealed that 92 percent of business enterprises mostly SMEs were impacted by the global pandemic. According to the survey results 85 % Of SMEs believed that the turn over is directly affected by COVID-19. This trend apply to both big and medium size enterprises. The most affected sectors are hotels, catering services, tourism, events, transport, crafts, commerce distribution. So far many have opted to dismiss workers in order to take traditional safeguard measures such as: partial leave shortening working hours or even technical unemployment. With 43% resorting to partial unemployment, while 53% announced that they would not be able to last for more three months if the crisis continues without expected support measures from the government. Fortunately, on April 30, 2020, President Paul Biya, through the Prime Minister and Head of Government gave 25 billion FCFA to help businesses, and 19 accompanying relief measures taken to mitigate the economic shock provoked by the fight against the COVID-19 pandemic. See below:7

The 19 Accompanying Relief Measures are as follows:

1- The opening after 6pm of bars, restaurants and leisure facilities, with the obligations for customers and users to respect barrier measures, in particular the wearing of protective masks and social distancing.

2- The lifting of the measures reducing the mandatory number of passengers in all public transport by bus and taxi. The wearing of masks remains compulsory and overloading is prohibited.

3- The suspensions for the second quarter of 2020 of general accounting audits, except in cases of suspected tax evasion.

4 – The postponement of the deadline for filing statistical and tax declarations, without penalties in case of payment of the corresponding balance.

5- The granting of moratoria and deferrals of payment to companies directly affected by the crisis, hence suspending forced recovery measures against them.

6- Supporting the finances of company through the allocation of a special envelope of CFAF 25 billion for the clearance of stocks of VAT credit awaiting reimbursement.

7- The postponement of the deadline to pay land taxes for the 2020 financial year to September 30, 2020.

8- Full deductibility to determine the corporate income tax of denotations and gifts made by the companies for the fight against the COVD-19 pandemic.

9- The exemptions from the Tourist Tax in the hotel and catering sectors from the rest of the 2020 financial years as from March.

10- Exemption from the withholding tax and from parking fees for taxis and motorbikes as well as from the axle tax for the 2nd quarter. This measure could be extended to the rest of 2020.

11- Exemption for the second quarter from the withholding tax and council taxes (market duy, etc) for petty traders (bayam sellams)

12- The temporary suspension for a period of three months of the payment of parking and demurrage charges in the Douala and Douala and Kribi ports for essential goods.

13- The establishment of a MINFI-MINEPAT consultation framework, with the main economic actors, in the order to mitigate the effects of the crisis and promote a rapid resumption of activity.

14- The suspension for a period of three inspections by the National Social Insurance Fund (NSIF).

15- The Cancellation of penalties for the late payment of social security contributions due to the NSIF, upon reasoned request.

16- Spreading the payment of the social security contribution for the months of April, May and June, 2020, over three instalments, for the next three months, that is from May to July, of the payment of family allowances to staff of companies which are unable to pay social security or which have placed their staff on technical leave because of the economic downturn, particularly in the catering hotel and transport sectors.

17- The maintenance, for the next three months, that is from May to July, of the payment of family allowances to staff of companies which are unable to pay social contributions of which are unable to pay social security contributions or which have placed their staff on technical leave because of the economic downtown, particularly in the catering hotel and transport sectors.

18- The increase of family allowance from CFAF 2800 N to CFAF 4500

19- The 20% increase of old pension that were not atomically revaluated after the 2016 reform.

The Prime Minister insisted that the support measures to relieve the sectors hard hit by the health crisis, were taken by the President of the Republic, Paul Biya following encouraging results observed in the implementation of the COVID-19 response strategy in Cameroon.

He also noted that the President of the Republic has decided to extend the measures taken on March 17, 2020, as part of the response strategy for an additional 15 days renewable if necessary.

Public workers who have abandoned their duty post under the pretext of confinement due to COVID-19, should return without delay to their respective work places, or face disciplinary sanctions provided by the regulations in force.

It is hoped that the impacting measures taken by the government could prevent the emergency of a more difficult economic and social crisis in the midst of the COVID-19, health crisis.

Caroline Okie-Anoma

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