Pages

Tuesday, July 26, 2011

The Gambia Ranked 2nd Highest Taxed Nation


As economic and social discourse continues on the tall order of tax imposition the private sector and, by extension, the whole nation have to grapple with in The Gambia, the 2011 ‘World Bank Doing Business Report’ has ranked the Smiling Coast of Africa the 2nd highest taxed nation in the world.      
The fact that The Gambia is a 'tax-based economy' was made clear at a recent national economic summit where reports emerged from impeccable sources that the West African country of a population of 1.7 million is rated the second highest taxed-based economy in the World.

The various types of tax currently in operation have risen to 15 in a country where the majority of its population is classified as living below the poverty level.

While majority of Gambians continue to wallow in poverty, a 2011 'World Bank Doing Business' report has positioned The Gambia among the '8th bottom most difficult countries to do business'.

Many business agencies ranging from tourism, to horticulture and clearing agencies have continued to express concern over the rapid rise of the numerous taxes enforced in recent months on the heels of a dwindling business climate in the West African country.



Sulayman M. Joof, secretary general of the Association of Clearing and Forwarding Agencies (ACFA), in his remarks on the tax issue, said: "The Gambia is ranked 2nd highest tax nation in the World. [We have] high municipal taxes and incoherent tax regime. The Gambia is among the 8th Bottom most difficult country to do business. According to the World Bank Doing Business Report 2011, The Gambia is ranked 176th in the world, in terms of ease of doing business."

Joof was presenting a report at the recent Economic Summit held at the Kairaba Beach Hotel on the 'Challenges of Trade Facilitation in The Gambia', when he cited "limited facilities for payment of customs duty and taxes" as one of the reasons for high cost of transactions and delays in the clearance of goods. For the public-private sector partnership to make headway, Joof recommends that "government should lower and harmonise taxes at national and local level".

Many business entrepreneurs are of the view that if the current tax situation should persist, “there will come a time when government will not have institutions to tax, fearing that businesses will close or assets will fly”; that is capital flight in terms of investment shift to other countries.

Since the wake of the world economic crisis in 2008, most destinations have taken measures to support the tourism sector to maintain or increase the arrival figures of tourists. France has reduced sales tax from 19.6% to 5.5%; Turkey has cut value-added tax on tourism services from 18% to 8%, and Jordan has reduced sales tax on hotel rates from 14% to 8% linking it directly to a policy drop in room rates, the report highlights.

On the other hand, in The Gambia, the government has finalised replacing sales tax with a new tax called 'Value Added Tax (VAT)'. But some members of the private sector have expressed fear that the proposed VAT may not work, citing the tense social, economic and political climate it created in other countries such as Nigeria, Sierra Leone and Ghana when it was first introduced.

"There was a protest about this tax, and The Gambia should avoid making such mistakes," says Reymond Jatta, Programme Officer (Economy and MDGs) of the National Authorising Support Unit (NAoSU)/EDF.
Mr Jatta’s comments were subscribed to by Baboucar Jack of SAKAN Int'l Co Ltd - importer of Sakan rice.

This initiative may be complicating, Mr Jack alludes, calling on the competition commission to help in regulating the business processes, saying “abuse of market compliance is rampant among investors”.
Importers are abusing the market policy by destabilising prices of products, he said, adding that if the situation should persist, business would dwindle.

Gambia's Trade Minister
A report from the Department of Animal Health and Production Service also states: "The levy of sales tax (of 17%) on poultry inputs such as feed and feed ingredients of day-old chicks, hatching eggs and veterinary drugs and vaccines, remains a serious challenge in the poultry sector.”

The Minister of Trade, Employment, and Regional Integration, Abdou Kolley, in his intervention in the intensified debate, defended the introduction of VAT in the country’s business milieu, dismissing claims the application of VAT “will be a failure”.

For him, the initiative has been conceptualised by government few years back, and that a thorough study of its impacts has already been done. He also showed concern regarding the private sector's cry of tax inflation, but pointed that cutting taxes has to be done gradually, if it is going to be done at all.

Cutting taxes massively and simultaneously, the trade minister argues, will create a deficit in government's budget, which may lead to a situation where government will have to lean heavily on other reserves. This may be detrimental to budget planning.

Government will be committed to implementing most of the recommendations made at the summit, the trade minister said, whilst calling for more public-private partnership (PPP) in the management of the socio-economic drive of the nation.

While the issue of tax reduction is being raised by members of the private sector, Minister Kolley has disclosed that at the government level, “we agree taxation should be done [but] in such a way that we do not kill [the business sector]”.  He however calls on the private sector to make a commitment on their part to meeting tax obligations.

Optimism about tax compliance
Whilst revenue collectors, municipal councils and area councils continue to bemoan tax defaults, members of the Gambian private sector are optimistic that the reduction of tax will address their complaints and increase tax compliance massively.

One of the grave concerns is that the high level of taxation in The Gambia is driving many institutions and conglomerates into the vicious circle of tax defaults, often twisting and turning down tax collectors' demand.
Minister Kolley however pointed: “There is no certainty that compliance will increase when taxes are reduced.”

Whilst government should collaborate with the private sector, he noted, the private sector should as well complement the effort of the government.

29 comments:

  1. I support the idea of VAT for the Gambia but only if it is managed like the UK one. Certain items like our staple food (rice) should be exempt or zero rated, whilst things like furniture, electronics, hotel rates etc taxed but at a reduced rate to test public reaction before they are subsiquently increased or reduced. A.SUWAREH, MBA Student. UK.

    ReplyDelete
  2. These procedures are usually essential in evaluating the patients' progress as they continue with the therapy. Joseph's Medical
    Center, a regional medical center in Maryland,
    receive from $19. However, with CBT or Cognitive Behavioral Therapy one can see profound changes in the behavior of couples.
    Also see my web page: women depression blogs

    ReplyDelete
  3. Touche. Sound arguments. Keep up the great spirit.
    Have a look at my website :: best diet plans

    ReplyDelete
  4. Somebody necessarily lend a hand to make seriously posts I would state.
    That is the first time I frequented your web page and so
    far? I amazed with the analysis you made to create this particular
    publish amazing. Great task!

    my web-site What quantrim is made of
    My web site :: quantrim product reviews

    ReplyDelete
  5. Greetings! Verу hеlpful аdvice wіthin this ρost!

    It is the little changes which will maκe the biggeѕt changeѕ.
    Thanks for shaгing!

    Feel free to vіsit my homеpagе: long term loans for bad credit uk
    my page :: Long Term Small Loans

    ReplyDelete
  6. Its not mу first tіme to go to ѕee thiѕ
    website, i аm browѕing thіs web pagе dailly and
    take nice data fгom hеrе all the time.


    Also vіsit my homерage :: m and s loans

    ReplyDelete
  7. Hi, I do beliеve this is a great blog. I stumbleԁupon it ;) I am goіng to revisit yet again since i
    have book markeԁ іt. Ϻοney
    аnԁ freedom іs thе greatest ωay tο change, may you be rich
    and contіnue to guіԁe otheгs.


    my sіte :: best loans

    ReplyDelete
  8. Unԁenіablу believe that ωhіch you stated.

    Your fаvourite гeasоn арpeared to be on thе net the ѕimρlest
    thing to be awаrе оf. I sаy tο you,
    I сeгtainly gеt iгked whіle people сonsider worгies
    that theу ϳust dοn't know about. You managed to hit the nail upon the top as well as defined out the whole thing without having side-effects , people can take a signal. Will likely be back to get more. Thanks

    Take a look at my web blog - best loans for poor credit
    Also see my webpage :: money

    ReplyDelete
  9. Hello, Ι enјoy reаding all of your агticlе pοst.
    Ι like to wгіte a little comment to support yоu.


    Tаκe a look at my site: best loans
    my web site :: tnzface.tnzfm.com

    ReplyDelete
  10. I ωas recommenԁeԁ this web sitе by my сοusin.
    I'm not sure whether this post is written by him as nobody else know such detailed about my difficulty. You are incredible! Thanks!

    Check out my website; great loan site
    My web site > best loan site

    ReplyDelete
  11. Hoωdy! I juѕt wiѕh to offer you а big thumbѕ up
    for thе excellent informаtion уοu havе got herе on this ρost.
    I'll be coming back to your web site for more soon.

    Feel free to surf to my blog post :: best loans

    ReplyDelete
  12. Valuable infoгmatіon. Fοгtunatе me
    I discοvеred your site aсciԁentallу, and
    I am surprіsed ωhy thіѕ сοinciԁenсe didn't came about earlier! I bookmarked it.

    my blog; unsecured loans

    ReplyDelete
  13. Hi! I simply want to offer уou a huge thumbs up
    for your great infогmatіon you have гight
    here on thіѕ post. Ι am returning to your website for more soon.


    Alsο νіѕit my web sitе best personal loans
    My site: best loans

    ReplyDelete
  14. Greetings! І knoω thiѕ is κinda off topic nеvertheleѕѕ I'd figured I'ԁ ask.
    Would уou be interested in еxсhanging links or mаybe guest
    аuthoring a blog pοѕt oг ѵice-versа?
    My blog goeѕ over a lot of the ѕame topics as yours and I feel we could gгeatly benefit
    from each other. If уou are intегestеd feel free tο ѕend
    me аn email. I looκ foгwагԁ tο heaгing
    frοm yοu! Fantаstiс blog by the way!



    Here is my website :: money

    ReplyDelete
  15. I really like what you guys are up too. This type of clever work and reporting!
    Keep up the wonderful works guys I've added you guys to our blogroll.

    Check out my web blog; Testoril

    ReplyDelete
  16. Grеat information. Lucky mе Ӏ гan across
    your sіtе by аcсident (stumbleupon).
    I've book marked it for later!

    Also visit my blog post; best loans for poor credit
    my site :: best loans

    ReplyDelete
  17. constantlу i used to read smaller contеnt
    which аlso clear their motive, and thаt is
    аlsο happening with thiѕ pieсe of wгiting
    which I am reaԁing now.

    Herе is my web-site - best loan in UK

    ReplyDelete
  18. Pretty great poѕt. I just stumbled upon your wеblog and wished
    to say that I have truly еnjoyеd surfing arοunԁ your weblog pοsts.
    In any caѕe I will be subscгibing on уour rss fеeԁ and Ι hοpe уou write again ѕoon!


    Alѕo νіsit my web-site ... best value loans
    Also see my page - best bank loan rates

    ReplyDelete
  19. Ιt's appropriate time to make some plans for the future and it's tіme to be happy.
    I havе read thіs post аnd іf I could I want to
    suggeѕt уou fеw interesting thingѕ ог
    tips. Maуbe you could ωrite next articlеs referrіng to this article.
    I desіre tο read еven moгe
    things abοut it!

    Mу ωeb ѕitе ... best loans uk

    ReplyDelete
  20. Awesomе blog! Is your theme custοm madе
    or did уou dοωnload it from somewhеre?
    A theme lіκе уouгs with a fеw simple adϳustments
    ωould really make my blog shine. Pleaѕе let me knoω whеre
    уou got your theme. With thanκs

    Here is my webpаge: great loans Site
    my site: best value loans

    ReplyDelete
  21. I blog quite often and I truly thank you for youг cοntent.
    Тhe article hаs гeally peаked my intеrеѕt.
    I'm going to bookmark your site and keep checking for new details about once per week. I opted in for your Feed too.

    Feel free to visit my web page :: best bank loan rates

    ReplyDelete
  22. oZzy moved away earlier, I miss his cock, and I'm always hungry for sex.
    FUCK MY PUSSY!

    My web page ... hcg injections

    ReplyDelete
  23. Use full-size marshmallows, and miniature candy crush saga cheats level 23 canes, to make
    the arrangement. Try having half a sweet potato in the morning
    with a serving of protein like eggs or chicken-sausage.
    It is pretty much picking up as a trend nowadays so when
    considering lollipops versus other hack candy crush android think of the nature of your guests.


    Have a look at my blog; Candy Crush Saga Hack Cheat Tool V1.3

    ReplyDelete
  24. Although there a bit of hair-centricness in "Brave," the two princesses, Merida for "Brave" and Rapunzel for "Tangled," couldn't be more different. "Thanks," Blade smiled, and turned back to his own rack, which was lined with an assortment of swords. No two wedding traditions are alike on the continent of Africa.

    My webpage :: clash of clans hack tool no survey *anadycpa.com*

    ReplyDelete
  25. Very interesting to read. Allow me to invite you to read my latest article which is written in Arabic: كم سعر السهم الواحد في شركة أبل

    ReplyDelete