The taxation of the informal sector in the Cameroonian context: What is at stake in the formalization and transparency of informal SMEs?

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This study examines the impact of informal sector taxation on the formalization and transparency of informal small and medium-sized enterprises (SMEs) in Cameroon. It explores the perceptions of informal SME managers on the effects of this taxation in the Cameroonian context. The results show a mixed effect, with some managers fearing the negative repercussions on the survival of their businesses, while others see it as a means of formalizing and increasing transparency. The study highlights the need for public authorities to communicate more effectively on the benefits of taxation and to take account of the socio-economic context when implementing it.

Keywords: Taxation of the Informal Sector, Formalisation, Transparency, Informal SMEs

JEL Classification: D83, G24, H26

Received: 28.09.2024
Accepted: 21.10.2024

How to cite: Mbama, P. C., & Mfelam, J. R. (2025). The taxation of the informal sector in the Cameroonian context: What is at stake in the formalization and transparency of informal SMEs? In M. Pazarskis, A. Kostyuk, V. Santolamazza, & P. Capuano (Eds.), Corporate governance: Scholarly research and practice (pp. 84–90). Virtus Interpress. https://doi.org/10.22495/cgsrapp16