By Yusef Taylor, @FlexDan_YT
This is the third installment on our Budget 2019 articles which takes a closer looks at the Economy and how it will affect the lives of everyday Gambian residents and businesses in 2019. After reading news of the increase on taxes of basic commodities such as cement, flour, onions and potatoes by Fatu Network a comparison was conducted on the tax increases as detailed in the 2018 and 2019 Budget Speeches. The details of this comparison are contained in Table 1 below. It can be seen that no mention has been made of the increases in taxes of the basic commodities listed above.
|
Exercise/Import Commodity |
1 2017 Tax |
2 2018 Tax |
3 2019 Tax |
|
Hon. Amadou Sanneh – 2018 Budget Speech |
Blanket Decreases |
|
|
|
Hon. Mambury Njie – 2019 Budget Speech |
|
Blanket Increases |
|
|
New Cars |
25% |
20% |
25% |
|
Commercial Rent |
15% |
10% |
15% |
|
Rice Import Duty |
15% |
0% |
|
|
Personal Income Tax |
30% |
25% |
|
|
Corporate Income Tax |
30% |
27% |
|
|
Income Tax on Turnover (audited accounts) |
2% |
1% |
|
|
Income Tax on Turnover (unaudited accounts) |
3% |
2% |
|
|
Residential Income Tax |
10% |
8% |
|
|
Used Cars (up to 5 yrs old) |
|
10% |
|
|
Used Cars (over 5 yrs old) |
|
15% |
|
|
Spirits |
|
15% |
60% |
|
Beer |
|
10% |
75% |
|
Wine |
|
15% |
60% |
|
1 & 2 – 2018 Budget Speech (See image below) |
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|
3 – 2019 Budget Speech (See image below |
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|
Compiled by @FlexDan_YT |
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The 2018 Budget Speech was prepared by Hon. Amadou Sanneh and features decreases for all commodities listed except for used cars which don’t detail the 2017 tax rates for comparison. The 2019 Budget Speech prepared by Hon. Mambury Njie features increases for all commodities listed and only features five commodities in comparison to the 2018 Budget Speech which features 10 commodities. This proves that the 2019 Budget Speech is scanty and leaves out a lot of information which could affect the everyday living of the general public.
Looking at the decrease (2018) and increase (2019) of taxes on New Cars and Commercial rent it can be concluded that Hon. Mambury Njie has reversed the decrease of his predecessor Hon. Amadou Sanneh. Hon. Amadou Sanneh managed to decrease Rice Import duty from 15% to 0%. Although this may have lowered the cost of imported rice however, some could argue that it leaves local rice producers vulnerable and is counter-productive in The Gambia’s crusade towards food self-sufficiency.
Fast forward to the 2019 Budget Speech which features no decreases, the highest increases are on Alcohol, however, the tax increases on basic commodities such as cement, flour, onions, and potatoes are not detailed. It’s of paramount importance for local businesses and residents to know the exact tax increases of basic goods and commodities in order to ascertain the impact it will have on them this year.
Figure 1 – 2019 Budget Speech Tax Reforms
Figure 2 – 2018 Budget Speech Tax Reforms
Ends