Gambiaj.com – (BANJUL, The Gambia) – The National Assembly has demanded greater clarity from the government over the tax obligations of contractors working on electricity projects financed under tax-exempt agreements.
The issue arose during questions to Petroleum and Energy Minister Nani Juwara following the presentation of audit findings on several electricity projects.
The Member for Upper Saloum asked whether companies contracted to implement the projects had fulfilled their tax obligations during the periods covered by the audits.
Government cites tax exemptions
Minister Juwara explained that withholding tax was not deducted from payments to some contractors because the financing agreements governing the projects provided for tax exemptions.
He said contractors whose agreements were signed before a 2024 directive from the Ministry of Finance were not subjected to the withholding tax requirement. According to the minister, those contracts had been negotiated before the directive and did not contain provisions requiring the new tax to be applied.
Juwara further argued that applying the 2024 directive retroactively to existing contracts could create legal and contractual complications.
Parliament presses for wider accountability
The explanation, however, left lawmakers seeking clarity on a broader issue: if contractors were exempted from withholding tax, how were their other tax obligations treated and verified by the government?
The concern goes beyond the deduction of withholding tax and touches on how the government ensures that contractors operating under tax-exempt financing arrangements comply with any tax obligations that remain applicable to them.
Minister Juwara maintained that the government had acted in accordance with the financing agreements governing the electricity projects.
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