Gambia’s Parliament is expected to pass a bill that is will the biggest tax breaks given to corporations and individuals in more than two decades, stoking optimism over President Adama Barrow’s stimulus plans.
The sweeping changes that would cut corporate taxes may see salaries in the private sector increased, reduction in rent and provide a needed relief for most Gambians.
There is a five percent reduction in personal income tax. Gambians would now be going home with more from their paychecks as the new tax policy will reduce personal income tax from 30 to 25 percent.
Gambians will also a reduction in rent, leaving them with more money in their pockets. Residential income tax will be reduced from 10 to 8 percent. Those paying the average rental price in The Gambia [D3,000 dalasis] would see a D60 reduction.
The new tax cut will deliver a significant tax cut for corporations and the modest saving in office rentals since the last one by the former President Yahya Jammeh. Corporate tax will be reduced from 30 to 27 percent and commercial rental from 15 to 10 percent.
The new breaks are sure to ignite joy in business groups and many families that are struggling to make ends meet. It is evenly weighed to help both businesses and families, leaving them with more to spend in the market.
The message of the new plan is that the new cuts should grow the economy, not the country’s unserviceable international debt. The debt has been reduced by 12 percent and the country has asked lenders to restructure loans.