FactCheck: Have Taxes Increased Under GRA in 2024?
GRA Commissioner General (c) GRA Facebook Page
By Haddy Ceesay
The Gambia Revenue Authority’s (GRA) Commissioner General Yankuba Darboe, told members of the press that “as far as we are concerned we have not seen any tax increments this year” at their first press conference of the year 2024.
When queried further by a journalist if “customs can increase tax”, Commissioner General Darboe explained that “we are not responsible for the rates. It’s only the Ministry of Finance [who] can introduce that and that has to go through Parliament and the Budget Speech has been read already. But [at] GRA, we are an operational institution. The Policy arm of the Government is the Ministry of Finance.”
He also said that “even at the level of the Ministry of Finance, they can also introduce it [a proposal to increase tax] to Parliament. The Parliamentarians can reject it if they don’t want the tax”.
Claim: GRA Commissioner Yankuba Darboe claims that “no tax increments have been observed under GRA in 2024.” Watch video of claim from 13:30 minutes here.
Fact-Check: According to Darboe, the GRA collected D15.6 billion in 2023, surpassing their target of D15.2 billion. Towards the end of 2023, GRA announced that after a meeting with Central Government their 2024 target for revenue collection is D19.2 billion which marks an increase of D4 Billion from the 2023 target.
Our research has unearthed the 2024 Budget Speech read out by the Minister for Finance and Economic Affair, Hon Seedy S. Keita in December 2023. The speech contains a section on the “proposed revenue measures for 2024” which details the tax regime for the year 2024.
With-holding Tax on Rental Income
A sub-section under this area focuses on the Gambia Revenue Authority and their tax regime for the year 2024. According to the budget speech, the GRA will “introduce a withholding tax on rental income by MDAs [ministries, departments and agencies] and all businesses under the category of large taxpayers” as prescribed below:
A person occupying a property used for commercial purposes shall at the time of making rent payments withhold tax on the rental income at the rate of 15%.
A person occupying a property used for residential purposes shall at the time of making rent payments withhold tax on the rental income at the rate of 8%”.
The speech noted that the taxes are to be “introduced” which means these are taxes which have not existed in the past. The taxes mentioned above will affect rent as landlords, Ministries, Departments and Agencies will be obliged to withhold some amount from the rent income they receive. This new withholding tax will almost certainly be transferred to people paying rent and will affect “MDAs and all businesses under the category of large taxpayer”. In addition, “this provision shall only be applied by MDAs and established private corporations”.
Increase on Sin Taxes, Gambling, Cigarettes and Alcohol
In what the government has branded as a sin tax, there shall be tax increases on gambling, cigarettes and alcohol.
The 2024 Budget Speech highlights that GRA will “increase the pool and betting tax on the winnings on betting, gaming, lottery, prize competition and gambling from 10% to 30% with effect from January 1st 2024”.
From 1st January 2024, a series of increases on excise tax will affect the following alcoholic imports:
Spirits from D245 per litre in 2019 to D260 per litre in 2024
Beer from D135 per litre in 2019 to D150 per litre in 2024
Wine from D210 per litre in 2019 to D225 per litre in 2024
Similar to Alcohol, Tobacco will also see increases on exercise tax and environment tax this year and these include;
Increase specific excise tax on cigarettes, cigar or cigarillos from D35/pack to D40/pack in 2024;
Increase the environmental tax on cigarettes, cigars or cigarillos from D5.22/pack to D7.22/pack in 2024;
Increase the excise tax on other tobacco products from D420/kg to D450/kg in 2024;
Increase the environmental tax on other tobacco products from D200/kg to D220/kg in 2024;
Introduce an additional 10% ad valorem excise tax on all imported tobacco products;
Introduce excise tax at 15% on all electronic cigarettes, vapour and gadgets;
To continue the Gambia’s commitment under the WHO Framework convention on Tobacco Control and ECOWAS Excise Directive on Tobacco Products, we will introduce a Tobacco Control Levy at D0.50 on cigarettes, cigar or cigarillos.
Other Tax Increases
Two more taxes have been identified under the GRA section on the Government’s 2024 Tax regime and these involve increase on excise tax on used vehicles and flour.
On used cars, the Minister of Finance revealed that the increase “is intended to discourage or reduce the importation of old vehicles into the country which post environmental hazards”. The GRA is instructed to “progressively increase the excise tax on used vehicles that are more than 15 years old. Used vehicles up to 20 years old will attract 20% excise tax, vehicles up to 30 years old will attract 25% excise tax. And any vehicle older than 30 years will attract a 45% excise tax”.
However, the resumption of taxes on flour could have a negative effect on the price of bread in the country. In 2021, the price of bread increased from D7 to D10. Now the government plans for GRA to “resume the collection of domestic excise duties on flour at 5% of ex-factory price from 1st January 2024”.
GRA Tax Increases in 2024 - Source 2024 Budget Speech
Verdict: Besides a number of other service fees which are set to increase that are outside the jurisdiction of the GRA, its clear that other taxes directly under the purview of the GRA have already been increased for the year 2024.
The tax increases which are under the purview of the GRA will affect rental income, gambling, alcohol, cigarettes, used cars and flour.
Based on our research, the GRA Commissioner General’s claim there are no tax increases in 2024 is FALSE and MISLEADING.
FactCheck Video: Have Taxes Increased Under GRA in 2024?
This article was first published on FactCheckGambia.org in the link: https://factcheckgambia.org/fact-check-have-taxes-increased-under-gra-in-2024/
