By: Kebba AF Touray
The Gambia’s Finance Minister, Seedy Kieta has said the implementation of the digital tax stamp project is not expected to have any meaningful price increase impact on excisable goods.
Minister Keita said this on Wednesday 10TH July 2024, at the National Assembly, while responding to questions put to him by lawmakers.
Mr Kebba Jallow, member for Jarra Central asked the Minister to state whether the implementation of the digital tax stamp will not increase the prices of essential goods and other goods that are covered under the Essential Commodity Act.
Minister Kieta said, “Digital stamp is neither a new tax nor a tax increase on applicable products. In addition, only flour forms part of the essential commodities, therefore the tax stamp is not expected to have any meaningful price increases impact on excisable goods”.
The digital tax stamp covers products such as bottled water, soft drinks including juice, beer, wines and spirits, flour 50kg pack, tobacco, cigarettes, cigar tobacco leaves, and cigarillos respectively.
Member for Bakau, Hon. Assan Touray, told the Minister that the delay in subventions to subvented entities and grant-aided schools has caused serious delays in the payment of salaries of the civil servants therein.
He asked the Minister to explain to the assembly what caused the delay and the actions taken by the Ministry to address the situation.
Minister Keita responded that all cash allocations including that of subventions are given to Ministries within the first week of every month for the Ministries to do the distributions as per their established internal control processes.
This internal process, he said, includes the Ministry’s payment vouchers for subvention to agencies that go to internal audit after which the payment vouchers are sent to the Accountant General to execute payment through the central bank.
Member for Jarra Central, Hon. Kebba Jallow asked the Minister to inform the assembly as to whether some wide consultations were done on the introduction of the digital tax stamp system in the Gambia.
“I would like to inform the member for Jarra Central that there were wide consultations of all stakeholders. Press releases were made and public notices were sent to print and electronic media in May 2023, about the planned introduction of the digital tax stamp,” Minister Keita replied.
Minister Keita added that formal letters of notice were sent to all manufacturers and importers in May 2023 informing them about the planned introduction of the digital tax stamp. The letter also specified the objectives and benefits to government, businesses, and the general public and the obligation of the businesses dealing in products within the scope of the project, he said.
These letters, he added, were followed by technical visits in May and June 2023 to the sites of the manufacturers by GRA and SIPCA technical staff to assess their preparedness and to establish a working relationship between the businesses and GRA to ensure a successful implementation of digital tax stamps.
“A training workshop was conducted for manufacturers and importers at Tamala Hotel from Tuesday 11th – Wednesday 12th of January 2024. The training was to give the manufacturers and importers hands-on demonstrations on the use of the system when ordering digital tax stamps online and when activating them before placing them into the market,” he added.
Jallow asked the Minister to explain whether the Ministry got approval from GPPA for the award of the GRA-SICPA digital tax stamp contract.
Minister Kieta replied that the SICPA contract went through a procurement process and it was advertised and responses were made and as such they followed the normal procurement procedures for the PPPs.
