Gambian economist has urged government provide tax relief as stimulus to the affected businesses and support those workers who are forced to sit at home because of the COVID-19.
“There is no doubt that the country is facing twin crisis from the coronavirus pandemic- one in our health system and the other in the economy which is now, from all indication, entering a recession.
The economic effects of banning all forms of public gatherings including the temporary closure of land borders, sea and airports, could turn into a protracted hardship for entrepreneurs as business activities halt and unemployment surge. The economic damage is leaving no private businesses or individuals untouched,” said Gambian economist Morro Gaye.
He added: “Government must provide tax relief to the affected businesses mainly in the tourism and services sectors, and look for ways to alleviate the financial hardship of the workers in the dying sectors.”
“Whilst the hotel industry is at a virtual standstill, restaurants are empty; tourist flights have been stopped; remittances, which is sustaining the livelihood of many families, is receding and those in the business of importing goods are struggling without income.
The ultimate fear is the lack of intervention from the relevant authorities to provide life support to the dying businesses and facilitate the process of workers to quickly access their social security NPF contributions since there are no institutions in the Gambia offering unemployment benefits to those laid off workers,” Gaye said in an opinion.
He said it would be a big step in the right direction if the Barrow government can engage the Social Security and Housing Finance Corporation (SSHFC) to revise its stringent National Provident Fund (NPF) policies to allow members who are affected to immediately access their paid contributions.
