TITLE PAGE

“THE IMPACT OF INFLATION ON VAT REVENUE

COLLECTED IN CAMEROON”

TEMATIO NGUEKEU Sandrine

July 2017

A dissertation submitted to the Department of Administrative Technics in partial

fulfilment of the requirements for the award of a Higher Teacher Post Graduate
Diploma (DIPET II) in Accountancy

Department of Administrative Techniques

THE UNIVERSITY OF BAMENDA

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 CERTIFICATION

We are certifying that this thesis “the impact of inflation on VAT collected revenue in
Cameroon” has been carried out by TEMATIO NGUEKEU Sandrine with registration
number 14T0639 in the Department of Administrative Technics of the Higher Teacher
Technical Training College (H.T.T.T.C) Bambili, University of Bamenda.

Supervisor Head of Department

Dr DOBDINGA Cletus Dr AMELI Valentine

Date………………………… Date…………………

Signature………………………… Signature………………

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 DECLARATION

I hereby declare that this thesis entitled the effect of inflation on VAT revenue collected in
Cameroon is written by me and is a record of my effort. It has not been presented before in
any publication.

TEMATIO NGUEKEU Sandrine

Signature: ………………………….. Date: …………………………………

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 DEDICATION

To my parents, TEMATIO EDOUARD

“Parents, received this work the first fruit of your multiform sacrifices”

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 ACKNOWLEDGEMENTS

Special thanks go to my supervisor Dr. Dobdinga for his patience in correcting this work.
Your invaluable contributions, encouragements and assistance throughout this research will
always be remembered.

My sincere appreciation goes to the executive director of the directorate general of Taxation
Mrs. Agbor Droty, who provided me with the necessary documents and for her kindness, her
advice which have help in the success of this research.

L extent my gratitude to the senior controller of Taxes in service to the division of statistics
simulations and Taxpayer registration in the directorate general of Taxation Mr.Bopda Tuam
Harold for his contribution, his participation and support for the realization of this work.

I am not going to forget the regional chef brigade of Taxation of Bamenda Mr.Ondoa
Bienvenu who provided me with some necessary documents, and who has also been very
instrumental for the realisation of this work.

My profound gratitude to all the lecturers of the department of Administrative Techniques and
more especially to Mr. Geah Henry Kenah, Mr. Dooh Bernard and Mr. Ngoh Christopher
Sam whose scholar care, developed professional maturity which has culminated in the
realization of this work.

I am equally indebted to my siblings who contributed morally and financially to the success of
this research.

I am also grateful to my friends Mr. Feudjio Syriac, Peguy, wavie Richard, Isaac for the
materials, corrections, encouragements, observations and constructive criticisms. Your
support is treasured in my heart.

To all my classmates of the department of Administrative Techniques in general and

Accountancy level 500 in particular, I say thank you all for the knowledge and experiences
we shared.

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 ABSTRACT
Value Added Tax (VAT) is a consumption tax on the value added to a product in
the process of production. Like all other indirect taxes, it is a tax that targets the final
consumer of goods and services. The main purpose of VAT in Cameroon is to increase
government revenue thereby reducing the government’s dependence on extern financial
institution and the budget deficits. However, VAT efficiency in Cameroon has never
reached the worldwide standard level given by International Monetary Fund. Certain
researcher as Asirigwa has attributed this bad performance of VAT to higher inflation rate of
the economy. Our problem is therefore to look about inflation and VAT efficiency in
Cameroon. In this research work our aim is to determine the influence of inflation on VAT in
the Cameroonian economy. In other words, our main objective is to examine the effect of
inflation on VAT Revenue collected in Cameroon. The study employed multiple regression
analysis as a method of study using the ordinary least square (OLS) regression
technique in estimation. Result of the analysis revealed that inflation has a negative
significant effect on VAT Revenue in Cameroon. GGPD have a significant positive effect on
VAT Revenue. We arrive at the conclusion that inflation, age of VAT and GGDP can be used
to predict VAT Revenue of Cameroon. As recommendation, the researcher should take in
consideration the international trade exchange rate in their future works related to this topic.

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TABLE OF CONTENTS

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LIST OF TABLES

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LIST OF FIGURES

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 LIST OF ABBREVIATIONS

ADF Augmented Dicker Fuller

CNLKM : Classical Normal Linear Regression Model
CPI : Consumer Price Index
EU : European Union
FIRS : Federal Inland Revenue Service
GPD : Gross Domestic Product
IFS : International Financial Standard
IMF : International Monetary Fund
NIS : National Institut of Statistic
NNS : New Neoclassical Synthesis
OLS : Ordinary Least Square
PPI : Producer Price Index
SPSS : Statiscal Package for Social Service
TA : Tax Administration
UK : United Kingdom
VAT : Value Added Tax

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