Speaking at a regional taxpayers’ seminar with business communities and district authorities held on 23 and 24 August 2023 at Mansakonko in Lower River Region, Mrs Njie Senghore said: “The Gambia is a tax-based economy”, and payment of taxes should be every citizen’s responsibility to ensure that taxes are paid to the state to realise national development.
According to her, the GRA, mandated to collect revenue on behalf of Government, had realised that most of the business people, who are engaged in lands deal agency, and landlords collecting money from tenants “are not forthcoming to pay” their dues to the state. “These are areas that the Government is losing a lot of revenue as a result of non-compliance to settle tax obligations to the state,” she remarked.
She said that even though civil servants’ salaries are minimal, the government deducts taxes from their salaries every month. “So I see no reason why business tycoons who are into selling and buying of lands should deviate from paying their fair share of taxes to the state,” she rationalised.
She also raised concern over the amount of money landlords are collecting from their tenants on monthly basis, yet they are reluctant to pay their taxes to the states, “which is unfair”.
She further stated that GRA would continue to work hand in hand with the Ministry of Lands through the Area Councils to trace some of these defaulters and “anyone found wanting will face the penalties of the revenue laws”.
According to her, GRA had made it easy for everyone engaging in a meaningful business making profit of more than two thousand dalasis to endeavour to pay his or her taxes.
“Despite that, GRA would allow you to assess yourself and come and make your own declaration and set up a payment plan,” she said, adding: “You are allowed to pay as you earn.”
She also advised business people to be honest in making declarations; “otherwise, if you are found wanting, by giving false declaration, there is a penalty for that matter”.
“Therefore, GRA allows you to assess yourself and come up with a clear and truthful declaration that will save you tomorrow for any eventuality,” she said.
According to her, The Gambia is a tax-based economy and for the states to realise major projects and programmes “taxes must be paid”.
To avoid facing such penalties, through ignorance, which is not an excuse to the law, she said, GRA deemed it very fitting to organise outreach sensitizations for district authorities and members of the business community on the revenue laws and the types of taxes administered by GRA.
She also stated that over the years, GRA had registered unprecedented revenue performance, due to the increasing level of voluntary tax compliance from the business sector. “But the real estate agencies and the landlords are not forthcoming in terms of paying their taxes to the state, while they are generating a lot of money from their businesses,” she said, adding: “We at the level of GRA will continue our sensitization on the need to pay taxes for national development.”
She used the opportunity to thank the Management and Board of GRA as well as the French Agency for supporting the educative and information-sharing seminar between GRA and the district authorities as well as the business community.
Mrs Senghore also said: “As representatives of the Government, it is prudent that the District Authorities understand the tax laws, processes and procedures governing revenue administration to promote compliance.”
The seminar was held to generate “remarkable understanding and cooperation” between GRA and LRR regional authorities and the business community, which would go a long way in enhancing voluntary tax compliance, among other good outcomes.
Contacted for his comments, GRA’s Commissioner General Yankuba Darboe, who was in the United States, said that in respect to Rental Income Tax, GRA had created a new unit responsible for only rental income tax collection. “They started operation in January 2023 and we have realised a very good collection from January to date compared to the previous year 2023,” CG Darboe said.
He added: “We are very hopeful that the compliance level will increase as time goes on, as our dedicated staff are now going from door to door and store to store getting data and ownership of the properties so that they can be liable for rental payment.”
