Baboucarr Joof, the Minister of Trade, Regional Integration, and Employment (MOTIE), announced that there is no increase in tax on cement imported from Senegal.
During a session at the National Assembly in Banjul, Joof responded to questions posed by Honorable Omar Jammeh, the representative of Janjanbureh Constituency. Jammeh inquired about the supposed tax increase on imported cement from Senegal and its potential impact on small-scale importers and the public.
Minister Joof clarified that the government had considered a policy to raise revenue by imposing extra charges on imported cement, as they were not receiving sufficient revenue from it. This proposal faced strong opposition both locally and internationally, leading to its reconsideration.
Joof elaborated on the benefits of importing cement in bulk and processing it locally. He mentioned that when the government imports powdered cement and bags it domestically, it creates local jobs and generates significant revenue. For instance, re-bagging 35,000 metric tons of cement pays NAWEC D1.3 million, GMA D1 million, and the importing company pays GRA and GPA between D25 to 30 million per vessel.
He highlighted that the total revenue from imported cement in 2023 was only D26 million, while a single vessel of imported cement could match that amount. This comparison led to the decision to import and process cement locally.
Honorable Alhajie Babou Ceesay of Sabach Sanjal raised concerns that the policy might negatively affect employment. Joof responded that many jobs associated with the cement trade were not in the Gambia. He noted that some companies involved in importing cement were not registered locally and only used Gambian trucks for final transportation.
Joof emphasized that the government’s policy aims to support and grow local businesses, not to harm them. He assured that the government is sensitive to employment issues and looks at broader benefits for the country. The goal is to expand the market, engage with neighbors for a common market, and take necessary measures to improve the economy.
He concluded by stating that revenue-generating measures, like the proposed tax on cement, are essential for funding national projects and achieving economic goals.