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 Gambia’s Tax-based Economay Expanding
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Momodou



Denmark
11733 Posts

Posted - 20 Oct 2010 :  17:13:04  Show Profile Send Momodou a Private Message
This editorial confirms the information about the proposed Airport Development fee of 20 EUR for each departing passenger in the topic at: http://www.gambia.dk/forums/topic.asp?TOPIC_ID=9862.

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DailyNews Editorial: The Gambia’s Tax-based Economay Expanding
The government should expand the economic base of the country instead of being entirely reliant on tax, loans and grant for its development projects.

Being one of Africa’s smallest countries with great endowments, The Gambia can exploit its resources for the sustainable development of the country without being part of Heavily Indebted Poor Countries (HIPCs) as we are today. Too much of indebtedness leads to lack of creditworthiness. We have a very arable land and very navigable waters.

Most projects of the government of the day are from loans - the roads, hospitals, schools among others, which some have been and still take as pride, while we have tens of billions to settle as loans.

Recently, the government has taken a decision to lift the hold on the introduction of Airport Development Fee (ADF) and the restoration of Landing, Parking and Lighting charges to their pre-June 2001 levels which is another giant step to make The Gambia’s economy more tax-based.

The management of Gambia Civil Aviation Authority has already circulate a notice in some media houses informing all stakeholders; airlines, tour operators, passengers amongst others that the new regime of charges will take effect from November 1, 2010.

It states that the Airport Development Fee of €20.00 (Twenty Euros) or its equivalent in Dalasis (the legal tender in The Gambia) will be applicable to each departing passenger except transit passengers and infants. The fee, the notice states, will be collected at departure by designated GCAA official or appointed bank on their behalf until such time an IATA Code is secured for its inclusion in air tickets.

Frequent air travellers like students, scholars, visitors and businesspersons consider the move by the government as unreasonable. This situation has called for the authorities to rethink policies that may negatively impact on people. From the notice, it is clear that when it comes into effect only transit travellers and infants are exempted but it has not exempted people traveling on emergency cases.

Good policy makers are those who always consider the plight of the ordinary people.

To get out of this tax-based phenomenon, the government can create more processing plants like the foundry at the GTTI complex that used to recycle machine parts. This foundry had a contract with Gamtel in the year 2000 and got about D200, 000 (two hundred thousand dalasis) as profit. And this was just a single contract. The unemployed skilled young people can be employed in such plants and still continue to be a sustainable source of income contributing immensely towards the socio-economic development of the country.

In a similar development, the deputy director policy, planning and research of The Gambia Revenue Authority (GRA) in our last edition said the government intends to introduce the Value Added Tax (VAT), in short by 2013.

As he frankly put it, the introduction of VAT is geared towards widening the tax base of the country.

The GRA official also went on to note that The Gambia will continue to depend heavily on taxation to finance her development projects, because there are no other immediate viable sources of revenue.

And it is clearly stated that GRA will continue with its tax reforms and modernisation programme as part of efforts to increase the annual revenue outturns in support of priority sectors of development.

One of the easiest and quickest ways to expand the economic base of The Gambia without heavily depending on tax, loans and grants is by linking our agriculture to production. Gambian women who have been claimed empowered in today’s Gambia are still toiling in gardens and could not have viable market outlets for their products amid lack of storage facilities. A lot of vegetables got spoilt in the markets every day, which could have been processed in The Gambia if processing plants were established. For example if gardeners are organized into a cooperative society, they can do their work in a large scale basis and the proceeds go back to them as their profits, thus helping them to live dignified lives.

We have been paying taxes and in fact have more taxes to pay but none can tell where these tax monies are going to.

The GRTS should initiate a programme that will call ministers to tell the nation what policies they have in place for the development of the sectors under their ministries so that journalists can also find out from the public what impact those policies have on their lives as a people.

Source: DailyNews

A clear conscience fears no accusation - proverb from Sierra Leone

toubab1020



12311 Posts

Posted - 20 Oct 2010 :  18:48:43  Show Profile Send toubab1020 a Private Message
The ideas here are good, but I think that it is a certainty that "airport development tax " will come into force I doubt that much money will be ploughed back in the development of the airport,as the article makes clear most money for projects in the past have come from loans "we have tens of billions to settle as loans" these have to be serviced.

This is important too,but will it come about ?

"We have been paying taxes and in fact have more taxes to pay but none can tell where these tax monies are going to.

The GRTS should initiate a programme that will call ministers to tell the nation what policies they have in place for the development of the sectors under their ministries so that journalists can also find out from the public what impact those policies have on their lives as a people."

"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Nyarikangbanna

United Kingdom
1382 Posts

Posted - 21 Oct 2010 :  00:50:51  Show Profile Send Nyarikangbanna a Private Message
The last time I check, about 42% of our GDP is spent on debt servicing. But heyy, have you noticed the bold statement coming from the pro-government Daily Observer? They said most of the developments projects are funded by loans. What happen to Allah's Bank then? That is certainly what the Sheikh has been stating as the source of funding for these projects. Don't you dire contradict our dear president, Mr. Editor.


Regards

I do not oppose unity but I oppose dumb union.
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toubab1020



12311 Posts

Posted - 21 Oct 2010 :  02:22:00  Show Profile Send toubab1020 a Private Message
42% is a very large figure and not sustainable,no wonder the "advisors" felt that the time had come to say STOP this cannot go on,will the loans ever be repaid ?
will the servicing continue?
It is Obvious that The Gambia cannot take steps as are being taken in the UK to deal with the country's money problems ,so what will happen,I think that The Gambia will try for a little and then those who have given loans will realise that they are not going to get their money back so they will write it off.Everybody will be happy ? I doubt that, because I suspect that countries that have previously given loans to The Gambia will not give loans again,problem,
what will happen to new generators and infrastructure that are required to give electricity to everyone for instance ?
It won't happen,despite everyone's best efforts to make it happen.What is the answer ?
Is there an answer?
Am I wrong?


"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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turk



USA
3356 Posts

Posted - 21 Oct 2010 :  03:09:26  Show Profile  Visit turk's Homepage Send turk a Private Message
quote:
The last time I check, about 42% of our GDP is spent on debt servicing


lol. That is too easy. Do you even know what the GDP is?

diaspora! Too many Chiefs and Very Few Indians.

Halifa Salah: PDOIS is however realistic. It is fully aware that the Gambian voters are yet to reach a level of political consciousness that they rely on to vote on the basis of Principles, policies and programmes and practices.
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toubab1020



12311 Posts

Posted - 21 Oct 2010 :  09:28:30  Show Profile Send toubab1020 a Private Message
turk,you should know by now that "simple is good ",that's almost the same as "too easy" YOU can of course give a lesson on GDP if that would help answer your question,we would all know then the reason for your question ,and why You think that quoting a % of GDP is "too easy".

"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.

Edited by - toubab1020 on 21 Oct 2010 09:34:17
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Nyarikangbanna

United Kingdom
1382 Posts

Posted - 24 Oct 2010 :  00:15:55  Show Profile Send Nyarikangbanna a Private Message
Toubab, indeed it is too high a figure and it shows how highly indebted the Gambia is. If we had better human rights and governance records, we would have qualified for debt relief under the G8 Gleneagles Accord and a further reduction under the U.S Millennium Development Growth. We would have also recieved and kept the US$11Million grant that was earmarked for the Gambia at the Geneva Round in 2005 as part of funding for a proposed poverty reduction programme but which was never delivered owing to legitimate donor concerns. These combined with better financial discipline would have required less than 32% of our annual national income to be appropriated for debt servicing purpose, a figure that is well below the 2000 level [37%] and certainly far below the pre-1994 statistics. So in essence, it is not only lavish spending and financial spillage that is responsible for our indebtedness but also the governance and human rights records of the country in the recent past.

Regards

I do not oppose unity but I oppose dumb union.

Edited by - Nyarikangbanna on 24 Oct 2010 01:37:09
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toubab1020



12311 Posts

Posted - 24 Oct 2010 :  17:39:48  Show Profile Send toubab1020 a Private Message
Nyarikangbanna thanks for that,you have obviously studied this problem in depth and are now well versed in the subject ,something that I am not,I comment mainly along common sense lines,it is obvious that 42% of GDP (GDP as a rough guide to work with ) is far too much, you have shown by your research that is indeed a fact that cannot be argued with, relief that could have been claimed was prevented from being claimed due to other factors which would have been taken into account,its all very high finance something of which I have no knowledge so cannot make any further observations.

"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Nyarikangbanna

United Kingdom
1382 Posts

Posted - 24 Oct 2010 :  22:49:25  Show Profile Send Nyarikangbanna a Private Message
Don't underestimate yourself, my good friend. You are making valuable contributions here too.

Regards

I do not oppose unity but I oppose dumb union.
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toubab1020



12311 Posts

Posted - 24 Oct 2010 :  23:08:22  Show Profile Send toubab1020 a Private Message
Thanks for that , I do not wish to interfere at all, as a non Gambian and a toubab,I have no right to. I enjoy reading about the Gambia a country that I have known for many years.I must say that gradually attitudes are changing a little in The Gambia,and I sincerly hope that this will be reflected in an improvement in the life of the average Gambian,WHO MUST PLAY HIS OR HER PART AS WELL.



"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Nyarikangbanna

United Kingdom
1382 Posts

Posted - 24 Oct 2010 :  23:40:10  Show Profile Send Nyarikangbanna a Private Message
You have a right to comment my good friend, because your money is going there too. The UK is the largest donor country to the Gambia despite our president's recent tirade against Her majesty's [God Save her] realm. See the link below.

Regards

http://ukingambia.fco.gov.uk/en/about-us/working-with-gambia/development



I do not oppose unity but I oppose dumb union.

Edited by - Nyarikangbanna on 24 Oct 2010 23:44:17
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toubab1020



12311 Posts

Posted - 25 Oct 2010 :  00:09:22  Show Profile Send toubab1020 a Private Message
I did think that the DIFID Office in The Gambia closed a year or so ago,that perhaps does not mean that DIFID is still not involved, I don't know as I am not a mover and shaker in any Government circle.


"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Nyarikangbanna

United Kingdom
1382 Posts

Posted - 25 Oct 2010 :  00:19:30  Show Profile Send Nyarikangbanna a Private Message
They are still active there and investing a lot in the judiciary.

I do not oppose unity but I oppose dumb union.
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toubab1020



12311 Posts

Posted - 25 Oct 2010 :  00:54:08  Show Profile Send toubab1020 a Private Message
Well that's great,hope they will try to get my favorite Gambian back his job


"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Nyarikangbanna

United Kingdom
1382 Posts

Posted - 26 Oct 2010 :  23:29:44  Show Profile Send Nyarikangbanna a Private Message
Oooooh! I don't know about that.

I do not oppose unity but I oppose dumb union.

Edited by - Nyarikangbanna on 26 Oct 2010 23:31:00
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toubab1020



12311 Posts

Posted - 27 Oct 2010 :  15:10:40  Show Profile Send toubab1020 a Private Message

Maybe in time he will be forgiven,when attitudinal change applies to everyone


quote:
Originally posted by Nyarikangbanna

Oooooh! I don't know about that.


"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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