He stated that both revenue and grants are projected at D44.7 billion (22.7 percent of GDP).
“Out of this amount, D29.1 billion (14.7 percent of GDP) will be domestic revenue and D15.6 billion (7.9 percent of GDP) will be grants.”
He emphasised that revenue outlook remains strong on account of improved economic prospects, continued domestic revenue mobilization, trust and favourable development partner support.
He stated that tax revenue is projected at D21.2 billion (10.7 percent of GDP) representing 23 percent increase from last year’s Budget.
“The growth is primarily driven by continued tax policy alignment, review of the investment code to strengthen control on tax expenditures, policy actions to support tax compliance, enhanced enforcement measures and the implementation of digital solutions to improve tax administration.
“However, The Gambia’s tax collection effort is relatively below the Sub-Saharan Africa (SSA) and Organisation for Economic Cooperation and Development (OECD) averages,” he stated.
“Both Corporate and Personal Income Taxes are expected to grow due to strengthened compliance management through data matching, revocation of Special Investment Certificates (SICs) of non compliant companies and other enforcement actions on rental income, excise duties through the tax stamp initiative and increase risk based audits.”
“Value Added Tax (VAT) will also see a boost in 2025, on account of ongoing audits in key sectors like telecoms and banking, planned audit in the hospitality sector and the anticipated introduction of an e-VAT invoicing system, which will help strengthen compliance in key revenue heads.”
He further revealed that Non-Tax Revenue is expected to increase by 45% in 2025 compared to 2024, “mainly due to an anticipated receipt of D3.5 billion (US$50 million) as payment for the second tranche of the Senegambia Bridge Asset Recycling Program.”
“In terms of grants, D12.6 billion is envisaged as project grants and D3.01 billion as Budget Support. The bulk of the budget support is expected to come from the World Bank D2.065 billion (US$29.5 million) and the European Union D945 million (€13.5 million).”
He highlighted that The Gambia Revenue Authority (GRA) remains committed to improving revenue and service delivery at all levels by making compliance easy and cost-effective.
“Guided by the GRA Corporate Strategic Plan 2020 – 2024, numerous reforms and modernisation strategies were implemented. To sustain the gains registered so far, GRA is developing a new five-year strategic plan (2025-2029).
“The plan will be underpinned by four strategic objectives which are: to improve voluntary compliance, enhance trade facilitation, ensure cultural transformation, and internal efficiencies. It will continue to leverage on ICT digitalization to drive modernization and reforms initiatives.”
Additionally, he stated “contract for the new Integrated Tax Administration System (ITAS) has been signed. It is aimed at digitalising domestic tax administration from registration, filing and payment processes.
“The GRA is working on other ongoing projects such as the development of the Rental Income System, digitalization of VAT collection, Border and Inland Border Control Reforms, Post Clearance Audit (PCA), Operationalization of Internal Affairs Function, and deployment of the Monitoring and Evaluation System. All are expected to ease reporting and creating accountabilities for the implementation of reform initiatives.”
