Comrades:
The following is from The Independent, from excerpts of SOS Famara Jatta's
Budget Speech:
The Independent Published Monday, December 16, 2002
As salaries remain unchanged
Tax ladder to the extreme top
The ailing economy and the worrying nosedive of the Dalasi has propelled
government to keep its head above water by punching out harsh measures.
Needless to say, it is to the detriment of the masses as could be learnt from
the 2003 budget speech delivered on Friday by the SOS for Finance and Economic
Affairs, Famara Jatta. The budget has formulated new revenue measures built on
a massive hiking of taxes. Built up of a 100 percent increment on the existing
taxes, new income taxes on artisan were reviewed upward to D 10, 500. In all
quarters, taxes were thrust up.
Motor Mechanics would be D2, 500 and D5000, Carpenters and Masoners would be
at D1, 500, D3000 and D5000, bakeries D11500, D3000 and D5000, iron benders
and welders D2, 500 and D5000, tailors D1, 500, D2, 500 and D4000, butchers of
other ruminants D1, 000, butchers of cattle D3, 000, cattle dealers D7, 500,
dealers of other ruminants D2, 000, foreign exchange bureaus D30, 000,
organized foreign exchange dealers D15, 000, mobile foreign exchange dealers
D5, 000 and Hair Dressers to pay D1, 500, D5, 000 and D10500. During the
course of the year stamp duty rates would be reviewed whilst penalties for
non-payment of payroll tax will also be reviewed for all Gambians who hold
managerial and supervisory roles except those in the public service.
According to the proposed review, the monetary fine of D5000 would be rushed
to D20, 000 whilst that of D2500 would be sharply increased to D15000. In view
of the new tax scheme, government would further revise, upwards, the existing
rates of Aliens Identity Card for ECOWAS citizens to D1000, Non- ECOWAS Aliens
to D1, 500, drivers license from D150 to D300 whilst residential permits would
also be increased by D800 for all classes A, B and C permits.
Excise Tax on imported water and soft drinks (including juice) would be D5.00
per liter, sales tax on services (consultants, advertising, transportation,
equipment renters, repair and maintenance with turn over exceeding D150, 000)
whilst excise tax of 5 percent ad valorem would be charged on canned fruit.
Prices of petroleum products have also been increased from effect last Friday
night. A litre of petrol left D10.5 to D15.o, diesel from D9.5 to D12.0 whilst
kerosene/ jet is raised from D5.5 to D7.0. Duty free prices are also raised
with immediate effect.
National debt
On the National debt of country, which was last year, described as ‘huge’, SOS
Jatta stated that the country’s debt burden has now increased to $601.0
million. According to him, the external debt component, which was at $437.50
million last year, is forecasted to reach about $ 490.0 million at the end of
this month there by representing a rise of 12 percent. He added that the
current ratio of external debt service to GDP stands at 3 percent in 2002
while the debt service to budget ratio stands at 36 percent. ‘The domestic
debt of the country has risen from D 2.6 million at the end of 2001 to D2.9
billion at end October this year’ he noted, adding that has increased to 14
percent, which reflects domestic financing of the budget deficit and use of
Treasury bills to mop up excess liquidity. The total servicing cost of
domestic debt, he went on, has increased from D224.6 million at end 2001 to a
projected D286.5 million at end 2002.
Price movement
On the price movement of the country, SOS Jatta stated that an analysis of the
Consumer Price Index for the low- income population in the Greater Banjul Area
have shown a projected annual inflation rate of 7 percent by the end of 2002
compare to corresponding figures of 4.5 percent for 2001. According to him the
‘food, drink and tobacco’ division accounted for 89. 7 percent of the rise in
the overall index, whilst the ‘ non- Food’ division accounted for 10.3 percent
of the overall rise. He added that the ‘meat, poultry, egg and fish’ sub-group
went up by 29 percent whilst two other subgroups namely ‘beverages, alcoholic
drinks’ and ‘Tobacco and Tobacco products’ have registered significant price
increases of 20.3 and 21 percent respectively. The subgroup that recorded the
most significant change, he said was ‘transport and communication’ registering
a percentage rise of 14.1 over the index for 2001. This subgroup alone he
added accounts for over a third (35.8 percent) of the change within the
non-food division.
Depreciation of the dalasi
On the depreciation of the dalasis, the finance SOS noted that the dalasis has
continued to depreciate against all the major currencies traded in the
inter-bank market during the first 10 months of 2002. He added that the Dalasi
depreciated in nominal terms on average by 10.9 percent against the pound
sterling, Euro, US Dollar, Swedish kroner (100) and the CFA during the period
under review. The depreciation, he said, was as a result of a combination of
factors such as expansionary monetary and fiscal policies as well as the less-
than –expected inflows from tourism re-exports and ground exports.
‘The US Dollar continued to be the most traded currency in the inter-bank
market accounting for 47.2 percent of market share as at the end of October
2002’ he revealed, adding that the Pounds Sterling accounted for 13.2 percent
of the total transaction volumes compared to 88 percent at end December 2001.
He added that the Euro, Swedish Kronner and CFA accounted for 36.0 percent,
0.9 percent and 1.8 respectively whilst unclassified currencies market share
dropped from 15.9 percent at end December 2001 to 0.6 percent at the end of
October 2002
Parastatals
On the financial performances of Public Enterprises, the Finance SOS stated
that Gamtel has done significant improvements as compared to the previous
years with its audited account showing a revenue collection of D421.9 million
whilst a total expenditure of D346.9 million resulting in a retained profit of
D74.9 million after taxation. He added that the SSHFC, GIA, MSA and GPA posted
profit whilst NAWEC and GPTC remain in liabilities struggling to keep their
heads above water due to a combination of factors.
Domestic economy
On the domestic economy of the country, SOS Jatta stated that GDP is estimated
to increase by 4 percent due to a positive growth envisaged in all other
sectors despite a poor crop performance, attributed to low rainfall. He added
that the crop performance is estimated to result in a drop of 6.8 percent in
total agricultural out put, with groundnut production falling about 12 percent
compared to last year. He added that despite the steep fall in crop
production, expected to decline by 10. 7 percent, the other sub-sectors of
agriculture once again recorded increases.
He added that the value added from the fisheries and livestock production is
forecasted to grow moderately by 4 and 3 percent respectively. He added that
manufacturing is expected to grow marginally by 4 percent with a relatively
lower expansion in small- scale undertakings of about 4 percent compared to 5
percent growth in large-scale activities. SOS Jatta further added that
electricity and water sector’s contribution to the GDP will register further
growth of 6.6 percent while the building and construction industry is
forecasted to maintain its growth of 3.6 percent from 200.
He noted that tourism functions, comprising mainly of hotels and restaurant
services are forecasted to increase by 8.2 percent. The telecommunication
industry is also expected to grow significantly by 10 percent. The Finance SOS
further stated that transportation would record growth of 7.5 percent whiles
business services are expected to improved from 2.2 percent growth in 2001 to
4.2 in 2002. Meanwhile, debate on the budget is expected to commence today,
Monday, by Members of the National Assembly. During the presentation of the
budget, many members could be heard whistling and murmuring in disbelief to
the high increase of taxes and petroleum.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
To unsubscribe/subscribe or view archives of postings, go to the Gambia-L Web interface
at: http://maelstrom.stjohns.edu/archives/gambia-l.html
To contact the List Management, please send an e-mail to:
[log in to unmask]
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
|
