By Kebba AF Touray
The Gambia’s Finance Minister, Seedy Keita, has proposed in his budget speech that all employees who receive a monthly pay not exceeding D3000 are free from payment of income tax. This should take effect as from 1st January, 2025.
He informed that in addition to tax policy and revenue administration reforms, the Government is seeking to introduce the following revenue measures effective 1st January 2025.
The proposed Income Tax rate for the Chargeable Income is given below:
D36,000 or less 0 percent tax;
D36,001 to D46,000 5 percent tax;
D46,001 to D56,000 10 percent tax;
D56,001 to D66,000 15 percent tax;
D66,000 to D76,000 20 percent tax; and
Above D76,000 25 percent tax.
(For the information of the reader, your chargeable income is your total annual income minus all the tax exemptions and tax reliefs you are entitled to.)
On other tax issues, the Minister said that a person who retains the services of a supplier, consultant, contractor, or subcontractor to carry out works supply labour or goods, or provide services, shall withhold tax on the gross amount of any payment to the supplier, consultant, contractor or subcontractor in respect of the works, goods or services.
In the case of a payment made to a non-resident contractor, he said at the rate of 10 percent, and (b) in the case of a payment made to a resident contractor in The Gambia for public works contracted with the Government of The Gambia, at the rate of 5 percent (c) In any other case, at the rate of 8 percent.
“A tenant, who is a Ministry, Government department or agency, local authority, diplomatic mission, international organization, established entities or a person under the category of large 43 taxpayers occupying a property used for commercial or residential purposes shall at the time of making payments withhold tax on the rental income at the rate of 15 percent in the case of a property used for commercial purpose, and 8 percent in the case of a property used for residential purposes,” said Finance Minister Keita.
He reported that a non-resident person who makes a taxable supply to The Gambia, shall register for tax with the Authority and obtain a Tax Identification Number.
- A non-resident person shall include the tax on its invoice for all taxable supplies;
- The person to whom a taxable supply is made in The Gambia shall withhold or collect the tax in The Gambia and remit the same to the Gambia Revenue Authority in the currency of the transaction;
- A non-resident person that makes a taxable supply to The Gambia may appoint a representative for the purpose of compliance with its tax obligations; and
- The Gambia Revenue Authority may issue guidelines for the purpose of giving effect to the provisions of this section, including the form, time, procedure for filing returns, and payment by non-resident suppliers.
He said that Non-resident suppliers of online or digital business-to-consumer, business-to-business, goods or services shall register with and obtain a Tax Identification Number from the Gambia Revenue Authority.
The Commissioner General, he said shall prescribe the type of documents that may be transmitted to the Gambia Revenue Authority by a non-resident person including the manner of transmission.
According to Minister Keita, the tax rate on the winnings of betting, gaming, lottery, and gambling, will be increased from thirty percent to forty percent of the winning.
He defines winnings as the payout from a betting, gaming, lottery, prize competition, gambling, or similar transaction under the Betting and Gaming Act, excluding the amount staked or wagered in that transaction.
He also said that with the approval of the Director of Agriculture, animal feed and agricultural equipment shall be exempt from duty if the Minister responsible for Finance is satisfied that the items are for the sole use of poultry farming or agricultural purposes.
Export duty, he said shall be imposed on waste and scrap metals at the rate of D5 per kilo, and the tobacco control levy on cigarettes, cigars, and cigarillos is revised to D2 per kilo.
He detailed that cigarettes and other tobacco products shall be taxed as follows:
(i) Excise tax on cigarettes and cigars is hereby adjusted from D40/pack to D45/pack;
(ii) Environmental tax on cigarettes and cigars is hereby adjusted from D7.22/pack to D9.22/pack;
(iii) Excise tax on other tobacco products is hereby adjusted from D450/kg to D470/kg;
(iv) Environmental tax on other tobacco products is hereby adjusted from D220/kg to D240/kg; and
(v) The ad valorem excise tax on imported tobacco products is hereby adjusted from 10 percent to 15 percent.
Minister Keita averred that motor vehicles purchased and imported by and in the name of the Government of the Gambia shall be exempt from all taxes and fees.
“This exemption is only applicable to central government entities and excludes government agencies and public enterprises. Taxable supply of goods or services in respect of a donor-funded project shall be zero-rated for the purposes of Value Added Tax,” he said.
He, however, detailed that MDAs are required to submit to the MOFEA a list of all contractors and copies of contracts.
According to him, the sales/purchase of air tickets shall be subject to a withholding tax rate of one percent on air tickets, whilst abolishing the green tea tax.
He said that in order to promote youth and sports development in the country, companies/ businesses will benefit from tax deductions during the computation of corporate income taxes for expenses arising from sports activities.
He also indicated increments in excise taxes on alcohol as follows; Beer from D150 per liter to D165 per liter; Wine from D225 per liter to D240 per liter and Spirits from D260 per liter to D275 per liter.
