Government Enforces Digital Tax Stamps on Bottled Water and Flour to Curb Revenue Leakages

Yankuba Darboe GRA boss

To stop revenue leaks, the Gambia Revenue Authority (GRA) has started mandating the use of digital tax stamps (DTSs) on flour and bottled water. The goal of this new system is to guarantee that all flour products and bottled water being sold in The Gambia are correctly taxed and registered.

The government may use current technology to track the movement of commodities from manufacturing to distribution by using digital tax stamps. This would help them clamp down on tax evasion and increase revenue collection. In the near future, the GRA intends to extend the usage of DTSs to further items.

Contrary to concerns about potential tax hikes, officials emphasize that the government’s primary goal is not to increase tax rates but to bring efficiency to their operations through digitalization. The integration of this advanced solution aims to optimize workflow, ensuring a more streamlined and effective tax administration system.

Further explaining the process, GRA’s boss Yankuba Darboe said, “Government is not out to increase any tax, in-terms of rate, what we are trying to do, is to bring efficiency in our work, you can only bring efficiency if you introduce digitalization.”

However, the Association of Gambian Manufacturers has expressed dissatisfaction with the new method. In a letter to the Permanent Secretary of the Ministry of Trade, Industry, Regional Integration, and Employment, they stated: “The local manufacturers are ready to close business and cancel all manufacturer products in The Gambia if the New Digital Tax Stamp administration and processing are not reviewed and reversed.”

The manufacturers contend that the New Digital Tax Stamp system’s installation is placing an excessive financial burden on their companies and may even force them to close. They think that the government ought to help regional producers by giving them free digital tax stamps and the equipment they need to designate their goods. They are also requesting that the contract with SICPA be reevaluated in order to guarantee the process’s impartiality and openness.

The majority of Gambians are in favor of using digital tax stamps as a way to increase revenue collection and stop leaks, in spite of the manufacturers’ reservations. They consider it intolerable that certain businesses fail to pay their fair share of taxes while others are forced to incur extra expenses. They contend that by using digital tax stamps, every business will make a fair contribution to the economy.

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