Borry Darboe, Country Sales and Marketing Manager of Banjul Breweries Company Ltd. over the weekend, informed Foroyaa newspaper of their negotiation engagements with Government concerning the heavy tax levied on their business. Darboe is hopeful that negotiations with the government can begin and lead to a favorable outcome over modifying the excise tax on domestic alcoholic beverages.
He mentioned that he has been in contact with the authorities and that he is optimistic there will be a tax reduction. Darboe mentioned that if the company were to close, it would have a severe impact on national economy that could potentially cost thousands of jobs directly and indirectly. Representatives of the company were asked to write and present a proposal to the government which was already done.
Darboe pointed out that in 2017 Banjul Breweries paid 120 million Dalasi in tax. In 2018 it paid 132 million Dalasi. And in 2019 from January to April it paid 97 million Dalasi. Darboe noted the 75% increment excludes the Value Added Tax. If this is figured in, the percentage jumps to 90% which would be severely detrimental to any business trying to operate at a profit. Because of this tax issue, the management decided on Monday May 13th to stop producing and selling those beverages in their stores.
Related article on domestic excise tax rates for alcoholic beverages: http://thepoint.gm/africa/gambia/article/press-release-new-domestic-excise-tax-rates-on-alcoholic-beverages-clarified