There is Zero Tax on Some Imported Food Commodities – GRA Head

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By Mustapha Jallow

The Commissioner General of the Gambia Revenue Authority (GRA), Yankuba Darboe, has clarified that imported food commodities such as rice, onions, and potatoes are exempted from taxes, including Value Added Tax (VAT). He emphasized that the government has implemented deliberate policies to zerorise import taxes on essential food items to ease the burden on consumers.

“Most of the time, business people attribute the high price of commodities to tax increases by the GRA. We have not increased taxes on commodities for a very long time. In fact, we’ve been reducing them. There is no duty and no VAT on imported rice. The only payment they make is the processing fee under the AU-Eco-Levy,” Darboe explained during a recent press conference.

This clarification comes amid growing concerns from businesspeople who claim that high taxes are driving up food prices. Darboe dismissed these claims, reiterating that the GRA has not imposed VAT or customs duties on essential commodities like rice, onions, potatoes, and vegetable cooking oil. He added that these measures aim to stabilize food prices in the country.

However, Darboe suggested that the rise in food prices might be attributed to external factors, such as transportation costs incurred in other countries and at international ports, rather than any taxes imposed by the GRA.

Speaking further, Darboe debunked allegations that the GRA has raised taxes, pointing instead to improved efficiency in revenue collection, which has resulted in the authority collecting over D5 billion.

“These achievements are due to system improvements, particularly digitization, which has significantly reduced leakages. We are gradually blocking these leakages and will continue to do so. By following this approach and broadening the tax base, we can collect more revenue without increasing the burden on the people,” he stated.

Darboe also highlighted the GRA’s efforts to combat smuggling, particularly the illegal trade in alcohol from neighboring countries like Guinea-Bissau. He noted that the authority has made significant interceptions and used the GRA Act to penalize offenders.

“We seize their vehicles and goods when we catch them and charge the owners. We use the law to deal with smugglers decisively,” he affirmed.

The Commissioner General assured the public that the GRA is tightening measures to ensure that food smugglers face severe penalties. This approach aims to protect the country from counterfeit goods and ensure the safety and stability of the market.