The prices of some locally produced goods will start
to skyrocket come 2012 as the government has added more tax on domestically
produced goods, something that will surely reflect on the final prices paid for
these goods by consumers, whose earnings rarely increase.
As part of measures to remedy the declining revenue
performance of the government, the Ministry of Finance and Economic Affairs has
announced that come 2012 it will widen the tax base in order to reverse the
current decline in revenue and also reduce the swelling deficit of the country
to the target that will allow sustainable growth in the economy.
Mambury Njie, Gambia's Minister of Finance |
“This will certainly increase the cost on local
producers,” said Abdoulie Baks Touray, an economist and financial analyst, who
spoke to Marketplace Magazine shortly after the minister delivered the budget
speech at the National Assembly on 17 December 2011.
Excise tax was zero rated to encourage the country’s
infant industries to produce more at a cheaper cost and be competitive. The re-introduction
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considered in determining the final prices of goods.
Mr Touray said that for producers, the introduction
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pass on the tax charges unto the consumers who will pay for it through
purchasing the goods.
Already, the local manufacturers are crying down the
number of taxes imposed on them saying the country’s different shades of
taxation is enough to put them out of
business.
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different types of taxes, a big challenge local manufactures are grappling
with.
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in terms of how they can expand their export base so that they can produce more
at a lesser cost,” he said.
The economic think-tank noted that local producers should
take advantage of the ECOWAS market, which is a market of 700 million people,
so that their unit cost in terms of economies of scale becomes much smaller and
they will therefore not feel the impact of the excise tax.
Under the ECOWAS protocol, there is the ECOWAS Trade
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member states to export to all the markets in West Africa and have a bigger
catchment.
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Expansion of the excise tax on domestic producers is
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been declining constantly over the past three years, resulting in less than
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The
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Cement
and sugar prices to hike
Again, as part of measures to remedy the downward
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the protection on sugar and cement on the premise that the protection has not
made any difference in the market price.
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tax.
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