By Fatou Dahaba
Seedy Keita, the Gambia’s Finance and Economic Affairs Minister, outlined the government’s revenue measures for 2025, which include tax increases on various products, such as betting, tobacco, alcohol, and metal scraps.
Minister Keita announced that the tax rate on betting, gaming, lottery, and gambling winnings will rise from 30% to 40%. He clarified that “winnings” refer to the payouts from these activities, excluding the initial amount staked or wagered.
Regarding tobacco products, the Minister revealed that the tobacco control levy on cigarettes, cigars, and cigarillos will be revised to D2 per kilo. The excise tax on cigarettes and cigars will increase from D40 per pack to D45 per pack, while the environmental tax on these products will rise from D7.22 per pack to D9.22 per pack.
Additionally, the excise tax on other tobacco products will be adjusted from D450 per kilogram to D470 per kilogram, and the environmental tax on other tobacco products will increase from D220 per kilogram to D240 per kilogram. Furthermore, the ad valorem excise tax on imported tobacco products will be adjusted from 10% to 15%.
These measures, the minister said, are part of the government’s broader strategy to enhance revenue generation and address public health concerns associated with tobacco and alcohol consumption.
The Gambian government also announced increased excise taxes on alcoholic beverages as part of its revenue measures for 2025. The new rates will raise the price of beer from D150 to D165 per liter, wine from D225 to D240 per liter, and spirits from D260 to D275 per liter.
In addition to the alcohol tax adjustments, Finance Minister Seedy Keita revealed that waste and scrap metals will be subject to an export duty of D5 per kilogram.
Despite these tax increases, the government has provided exemptions for certain items. Animal feed and agricultural equipment will be exempt from duty, provided they are for the exclusive use of poultry farming or agricultural purposes, subject to the approval of the Director of Agriculture.
Furthermore, motor vehicles purchased and imported by the Government of The Gambia will be exempt from all taxes and fees, although this exemption applies only to central government entities, excluding government agencies and public enterprises.
Minister Keita also noted that the taxable supply of goods or services related to donor-funded projects will be zero-rated for Value Added Tax (VAT). However, Ministries, Departments, and Agencies (MDAs) are required to submit a list of all contractors and copies of contracts to the Ministry of Finance. Additionally, a withholding tax rate of 1% will be applied to the sale and purchase of air tickets.
These measures reflect the government’s ongoing efforts to balance revenue generation while also supporting key economic sectors.
Finance Minister Seedy Keita outlined several tax policy and revenue administration reforms that the government plans to implement starting January 1, 2025.
One key proposal involves the introduction of withholding tax requirements for individuals and entities that engage suppliers, consultants, contractors, or subcontractors for various services. Specifically, a withholding tax will be applied to the gross amount of any payment made for works, goods, or services rendered.
“The rates will vary based on the residency status of the contractor: Payments to non-resident contractors will be subject to a withholding tax rate of 10%; payments made to resident contractors in connection with public works contracted by the Government of The Gambia will incur a 5% withholding tax. In other circumstances, a withholding tax rate of 8% will apply.”
Additionally, tenants who are Ministries, government departments or agencies, local authorities, diplomatic missions, international organizations, or large taxpayers occupying properties for commercial or residential purposes will be required to withhold tax on rental income at the following rates: 15% for commercial properties and 8% for residential properties.
According to the finance minister, these proposed reforms aim to enhance revenue collection and improve tax compliance across various sectors, contributing to the government’s overall fiscal strategy.
