Extra Ordinary Session of the National Assembly yesterday dropped tax on Beer from 75% to 35%, Spirits from 60% to 40% and Wine from 60% to 40%.
In April 2019 new tax policy dubbed ‘excise tax has that catapulted the company’s tax obligation from 10 percent to 75% forcing the company to laid-off eighteen of its casual staff, while hundred more staff risk losing their jobs once the company takes a definitive decision to cease operations.
Reporting to Lawmakers at National Assembly recently, Mamburay Njie, minister of finance said last year’s tax rise on alcohol is meant to curb its consumption among young people growing needs to create social safety nets for the youths from the negative effects of alcoholic abuse due to lower prices.
Banjul Breweries Company Ltd is a French Flagship Company with 99% French ownership and employing over 150 Gambians whose means of livelihood depends on the Company.
Njie told Lawmakers that the excise tax “came with its own challenges and unrealistic for implementation and therefore created and continues to create challenges in the industry.
“New tax was in no way an intended target of a specific sector but rather propelled by a growing need to initiate social safety net for the youths… from the negative effects of alcoholic abuse due to lower price,” he pointed out.
He claimed road safety has been compromised by drunk driving mostly by the youths, informing Lawmakers that tax was as a result of extensive negotiations between his ministry, Trade Ministry, National Assembly Select Committee on Trade and the Gambia Revenue Authority.
Halifa Sallah, a member for Serrekunda said: “If we simply stand here and say we support something, then we will be indicted for supporting a social ill.
“Why didn’t the government simply abolish the investment into any institution that produces alcohol or the importation of alcohol?
“The government therefore does not have a policy of prohibition. And we don’t want to hear here that the taxation was designed to do that. Because if that is the objective you can use stronger-hand measures to abolish it,” he said.