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VAT Validation Workshop Underway in Banjul
Tuesday, 21 February 2012 19:19
(JollofNews) – A two-day Value Added Tax (VAT) validation workshop organised by the Gambia Revenue Authority
(GRA) today kicked-off at the Paradise Suite Hotel in Kololi. The workshop is designed to help participants to have a good knowledge of the VAT system as Gambia is gearing towards harmonising its tax policy in line with other ECOWAS member states.
As part of a series of public sector reforms initiated by the Gambia Government, the VAT is expected to broaden the country’s revenue and
improve resource mobilisation in order to fund national development.Essa Jallow, director of Technical Services and VAT project manager, said it is important for the Gambia to introduce the VAT as the existing sale tax is not broad base.
“Despite the fact that both of them are targeting consumption, the VAT is expected to bring in more revenue,” he told Jollofnews.
“Also, ECOWAS has issued a directive on the harmonisation of tax policies within the sub-region. That is why the organisation is providing support to all the remaining countries that have not adopted VAT.”
According to him, the Gambia has gone far with the implementation of the new tax policy and the VAT will be introduced at the beginning of next January. He added that the VAT will only be levied on current goods that are liable to sale tax.
Mr Jallow dismissed fears that the VAT will hurt the consumer’s purchasing power of the country.
“There will be no price increase as a result of the VAT and all necessary measures have been taken to minimise its social effects. We have looked at certain basic commodities such as rice and sugar and will make sure that their consumption will be exempted from VAT,” he said.Christophe Waergegers, consulting counsel at the IMF Financial and
Legal Law Unit, said the VAT constitutes a very important tool for the business community and GRA.
“It is both beneficial process for the business sector and the country’s authorities to make tax system more transparent, neutral and productive,” he said.
At the end of the on-going validation workshop, participants will be able to acquaint themselves with the latest reference works and information management tools regarding the VAT.
Written by Abdoulie John
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Comments
..and you are right.
Some Gambian's will red card you because of prejudice...to your "beliefs"... and not your "substance" to the debate.
In my opinion...
Jollof News...promotes equal opportunity to all sides.This is refreshing for the online media.
I have been "edited" several times...I am not complaining.
What is permissable in England is not always permissable in Africa...{and vice versa}
We must rely on the wisdom of the editor and his considered opinion under Jollof's published perameters/guidelines.
Let us say NO to racism, bigotry... discrimination... segregation..and prejudice
Also the increase in borrowing and its repayments allied to the "robust" 5%growth calculation to GDP.
and control inflation.
Clearly..the Gambia has great need to extract a level of taxation equivalent to the funding cost of its Public spending programme.
You can certainly understand the wisdom of the recent call to the diaspora for inward investment..But there is also a great need to finance the advanced PAGE programme and a need to protect, encourage, and attract foreign investors.
I agree that if fuel subsidies are cut and VAT is introduced...the outcome could become very interesting.
However..Gambia has a solid history of inteligent fiscal management.
However,judging by the timing of its introduction ( well after ALL ELECTIONS ),one can say that even the government is being cautious and may be worried about its impact..
What happened in Nigeria should be a lesson to learn from..
On two occaisions they entered my business premises unannounced...to comandeer..my "books" and bank accounts which effectively closed my operation for several days.
Fortunately...I paid an accountant to cross check all my invoices every month.
I always paid my taxes and never "fiddled" a penny.
I was outraged that I had no course to appeal or seek compensation for my losses.
The temptation is to run a set of "books" that comit to cash transactions outside the sight of the tax inspectors.
In Britain..the "black economy" that aims to evade this tax stream...runs into billions of pounds. This "white van" culture works solely on "cash without invoice"
I have for some years now advised small business start ups on correct/accurate/transparent, accounting procedures.
That breakdown was very helpful,Mike..
Britains rate was introduced at 8% then increased to 15% by Margaret Thatcher.
The present rate is now a staggering 20%
Simple explanation:
Manufacturer buys raw materials at supply price + vat.
They sell to wholesaler at supply price + profit + vat.
The wholesaler sells to retailer at supply price + profit + plus vat.
The retailer sells to the consumer at supply price + plus profit + vat
The tax generation stream to government is extreme and seamless.
Analogy;
Buy in at one pound + vat{20%} = £1.20
Sell at £2 + vat = £2.40
You reclaim the buy in.. vat £.20
You pay to revenue ...£.40
Net payment to government £.20
Or 20% of profit.
The man who says vat does not increase prices..is a man who is talking a load of xxxxx.
Isn't taxation (of commodities included) the principal source of revenue for our country ? Don't buy that story..
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