Friday, January 7, 2011

2011 Budget on Tax Measures and Increment

NEWS BANJUL THE GAMBIA(MB)- According to the Minister of Finance and Economic Affairs, Honorable Abdou Kolley, much of the growth in revenues in the past years has been on account of increases in duty and tax rates. He added that since the establishment of the Gambia Revenue Authority (GRA), there has been lot of emphasis on strengthening tax administration and improving tax collections.
Kolley explained that reform at the GRA are continuing with emphasis on improving its tax database, developing better internal controls, strengthening enforcement- capacity and improving the utilization of Information and Communication Technology (ICT) systems. Their statement, he stated, were made during the budget statements and economic policy financial year 2011, presented to the National Assembly on the 17/12/10 by himself. According to the finance minister measures to be implemented by GRA in 2011 include the following:

-Simplify record keeping obligations for small and medium size tax-payers
-limit the informal sector tax to very small business with an annual turnover below D100,00 business with a annual turnover between D100.000, D1.200.0 will be tax based on turnover, using simplified tax records (e.g. cash journals) and applying a set of predetermined profit to turnover ratios, business with annual turnover  above D1.200.000 will be taxed based on profits.
-Enforce the collection of all Excise taxes on domestically produced goods as stipulated in the customs and Excise Act 2010.
-Explore the possibility of using commercial banks in tax collections with a view to facilitating faster collections and reconciliation of tax revenue collections.
-Enhance tax-payer services including tax payer out reach activities and establishment of tax and customs tribunal. The Hon. Minister went on to say that tax compliance in the Gambia remains a formidable challenge. He therefore urges all Gambian’s to always comply with their tax obligations.
In an effort to enhance domestic revenue mobilization, the GRA with effect from January 2011, will collect:
- A credible with holding tax on imports of 1 percent of the import value.
-    In line with government policy to simplify tax administration, tax on rental income on commercial properties will now be taxed on a flat rate of 15 percent.
-    The fees for registration of marriages have been increased as follows: where one party is either a citizen of the Gambia or a citizen of ECOWAS and the other party is neither a Gambian nor a citizen of ECOWAS and the other party from D8,000 to 15,000, and where both parties are citizens of the Gambia nor citizen of ECOWAS from D10,000 – D20,000.
-    Business registration for companies, individual and other miscellaneous receipts have now been increased and the news fees would be gazetted to come into force in January 2011.
-    Government will also introduce a new levy on private educational institutions. The appropriate
-     Levy the Honorable Minister Kolley said will be gazetted come January 2011.

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