Heavy Tax Burden, Imported Goods Killing Local Industries

The heavy tax burden on local manufacturing companies in The Gambia and the dumping of cheap imported goods in the country is ravaging and virtually killing the local industry, manufacturers in the country have lamented.

Taxes are a big burden on local manufacturers in The Gambia

Some member companies of the Gambia Manufacturers Association (GMA) told Gambia News Online that the number of taxes imposed on them is enough to put them out of business, especially at a time when they have very low sales as they find it very difficult for their locally produced goods to find a mark in the country’s market which is flooded with imported goods at a cheaper price than locally produced ones. 

“The key issue affecting Gambian manufacturing companies is the heavy tax and the stiff competition from the imported goods,” said Saja Sambou of Gambega, a member company of Gambia Manufacturers Association (GMA). 

“We are paying so many taxes, and electricity cost is also high. In light of all this we face very intense competition from Brand B products.  By Brand B products, I mean imported goods; products that are being produced locally and a similar product is imported from somewhere and dumped into the market at cheap price.” 

The Gambia Ranked 2nd Highest Taxed Nation

As economic and social discourse continues on the tall order of tax imposition the private sector and, by extension, the whole nation have to grapple with in The Gambia, the 2011 ‘World Bank Doing Business Report’ has ranked the Smiling Coast of Africa the 2^nd highest taxed nation in the world.      
The fact that The Gambia is a 'tax-based economy' was made clear at a recent national economic summit where reports emerged from impeccable sources that the West African country of a population of 1.7 million is rated the second highest taxed-based economy in the World.

The various types of tax currently in operation have risen to 15 in a country where the majority of its population is classified as living below the poverty level.

While majority of Gambians continue to wallow in poverty, a 2011 'World Bank Doing Business' report has positioned The Gambia among the '8th bottom most difficult countries to do business'.

Many business agencies ranging from tourism, to horticulture and clearing agencies have continued to express concern over the rapid rise of the numerous taxes enforced in recent months on the heels of a dwindling business climate in the West African country.