By Kebba AF Touray
In a transformative shift for The Gambia’s business landscape, companies have welcomed the introduction of the Gambia Revenue Authority’s (GRA) Digital Tax Stamp initiative. This initiative is viewed as a significant advancement for both businesses and the national economy.
Part of a broader digitalization of tax administration, the initiative has been praised for its positive impact on compliance, transparency, and fair competition.
Introduced in 2024 following an agreement between the government of The Gambia and SICPA, the solution provider fulfilling GRA’s reform priorities under its Corporate Strategy Plan 2020-2024, the digital excise tax stamp is designed to revolutionize how excisable products are tracked and monitored.
The system employs unique identifiers, such as QR codes, to enable real-time tracking of goods throughout the supply chain. This drastically reduces opportunities for smuggling, under-declaration, and counterfeiting.
For local manufacturers and importers, this innovation has resulted in a more level playing field. Prior to the introduction of the digital stamp, the market was inundated with illicit goods, making it difficult for legitimate businesses to compete. Now, with the digital stamp in place, smuggled and counterfeit products are far less prevalent, allowing genuine producers to enjoy improved market conditions.
Prominent Gambian companies, including Bell Beverage Company and Gambega Coca-Cola Manufacturing Company, have publicly endorsed the new system. Management from these firms has expressed appreciation for the transparency and accountability that the digital tax stamp brings to their operations. In particular, Bell Beverage Company has noted that the system helps protect local industries from unfair competition and supports the growth of the national economy.
During a recent industrial tour, GRA Commissioner General Yankuba Darboe commended the high compliance rate among manufacturers. He emphasized that the digital tax stamp not only broadens the tax base but also reduces tax evasion, ensuring that all businesses pay their fair share without increasing tax rates. “We cannot increase tax, but we want to broaden the tax base. We are trying to stop tax avoidance. Digital tax stamps will reduce tax evasion due to under-declaration,” said CG Darboe.
Market Fairness
The introduction of the digital tax stamp has already produced tangible results. According to GRA reports, the system has helped cut smuggling of excisable goods by as much as 95%, a remarkable achievement in such a short time. This has led to increased government revenue and created a more secure environment for legitimate businesses to thrive.
“The introduction of the stamp was initially challenging due to the adaptation of sticker application into the production line, but it improved once we were provided with automatic applicators. It has streamlined the compliance process,” the management of Bell Beverage Company told The Standard recently.
According to Bell’s management, the digital stickers differentiate between smuggled and non-smuggled goods. “This provides a level playing field and assists in combating counterfeit or smuggled goods. It also greatly helps in controlling illegal practices,” the company added.
They noted that the stamp has not negatively affected customer relations.
The Digital Tax Stamp initiative is part of a broader effort by the GRA to modernize tax administration through digitalization. By leveraging technology, the authority aims to streamline operations, improve efficiency, and foster a more transparent and equitable business environment.
The company urged the GRA to ensure 100% compliance by conducting more inspections and tightening declaration mechanisms at all ports of entry for goods via sea and land.
For Gambian businesses, the digital tax stamp represents not just a regulatory requirement but a significant enhancement to their operations. It promises a future where fair competition, transparency, and accountability are standard, paving the way for sustainable economic growth in The Gambia.
