HOW SENEGAMBIA BRIDGE GENERATE BILLIONS OF GAMBIA FUNDS

The minister for Finance and Economic Affairs, Seedy Keita, has informed lawmakers that the total revenue generated from the SeneGambia Bridge between 2021 and 2023 stands at D1.09 billion.

Responding to questions from deputies yesterday at the Assembly, Minister Keita added that the amount represents a collection of D285 million in 2021; D389 million for 2022 and D411.2 million for 2023.

He revealed that the funds are put into the consolidated revenue funds, saying collections are being done by the staff of the Accountant General’s Department.

Hon. Alhagie Mbowe, the lawmaker for Upper Saloum, was curious to understand why withholding tax is 10% for Gambian residents and 15% for non-residents, which is a legal requirement, while companies are also required to remit VAT payments to the government at the end of each month, citing it as unfair.

Responding to this, Minister Keita said withholding tax is not a tax payment; rather it’s an advance payment of obligation, while VAT is a tax imposed on the use of certain goods and services. He added that these are collected on behalf of the government by business owners. He further explained that the two are not levied on the same source and “there is nothing unfair for companies to be collecting tax on behalf of the government irrespective of the use of goods and services by the parties.”

He further explained that VAT is a tax enterprise collected on behalf of the government and returns are supposed to be surrendered quarterly. “So when a VAT element is computed as part of the withholding tax competition, it gives the taxpayer further credit for settlement of tax obligation.”