More Taxes On Tobacco Products In 2021
Mambury Njie, Minister Finance and Economic Affairs, has disclosed that the tax exercise on tobacco products is expected to increase to 70 percent of the retail price.
“In line with the country’s commitment under the World Health Organization (WHO) frame work on convention tobacco control, the ECOWAS directive on tobacco product in the Gambia and the Gambia tobacco control act 2016. All of which required the government to increase the share of exercise tax on tobacco product in the country at least 70 percent of the retail price,” he said on Friday during the tabling of the appropriation Bill 2020.
He added that the increase specific exercise tax on cigarettes and cigars from D25 per pack in 2020 to D30 per pack in 2021 also an increase in environmental tax on cigarettes and cigars from D2.9 per pack in 2020 to D3.22 per pack in 2021.
Minister Njie also pointed out that tax on tobacco products will increase from D363 per kilo in 2020 to D399 per kilo gram in 2021, adding that even the environmental tax on tobacco products will also be increase from D175 per KG in 2020 to D185 per KG in 2021.
“The tax expenditure policy document has been approved for the guarding frame work of which the tax and duty exemption are granted and the Gambia Investment & Export Promotion Agency (GIEPA) act has been revert with the objective ensuring that issue on actual investment and job creation.
As tax expenditure fund the ministry is implement the following measures that is any contract or agreement with a duty or tax exemption that is sign without consultation with written approval of the Ministry of Finance and Economic Affairs will not be on and this includes all PPP contract on loans and grants funded project,” he pointed out.
Revenue to be implemented in 2021
Minister Njie, revealed that the voluntary VHT registration threshold will now be increase from five hundred thousand dalasi to one million dalasi and also to improve reporting and reduce risks of misreporting all tax payers categorize as large tax payers will be up large to file their audited financial statement alone with annual tax returns.
“To increase and encourage the formalization of the micro-small and medium size enterprises the ministry of finance in consultation with the ministry of trade has revise down ward the cost of incorporation fees from ten thousand dalasi to four thousand dalasi, and business registration certificate from one thousand dalasi to five hundred dalasi.”
“To reduce the cost of doing business on investors and sold proprietors in the informal sector will be now exempted from payment of payroll tax to henceforth and payroll tax will only be administered on the formal sector as define by the regulation,”
“The environmental tax of D1per employee will henceforth eliminate and the exercise tax on new vehicles will be reduce from 25% to 15%. The airport transport levies will be eliminated,” he stated.
Source: THE VOICE