“Tax revenue is expected to increase by 24 percent due to improvements in economic performance and enhancements in tax administration through digitalization and compliance,” he told deputies.
He also noted that a tax expenditure policy set to be adopted will also help to enhance revenue by reducing exemptions, increasing collection of third-party data and improving tax compliance.
“There are also on-going efforts to increase collection of Corporate Income Tax (CIT) of major contractors, particularly those benefiting from major government contracts in the construction sector and in PPP contracts,” he said. “Preliminary engagements have begun and they are ready to regularize their tax obligations. In addition, the current scope for rental income tax collection will be enhanced by developing a comprehensive register of owners of residential and commercial properties in order to strengthen tax compliance under this income tax category.”
He further stated Non-Tax Revenue is expected to increase by 86 percent due to partial anticipated receipts of US$10 million from arbitration award and the payment of the first tranche of US$15 million from the Trans-Gambia Asset Recycling Program.
Moreover, he noted that “an additional D500 million has been factored to cater for more revenues from non- tax revenue to reflect the enhanced domestic resource mobilisation drive. ‘It is time for the revenue base to expand to reflect self reliance for our national development instead of relying on donor/ partner support.”
He said the 2024 budget will factor Budget Support to the tune of D3.18 billion from development partners, compared to D2.77 billion in 2023.
“The bulk of the budget support is expected to come from the World Bank (USD25 million), the European Union (EUR14 million), the African Development Bank (USD7 million) Agency France Development (EUR 5 Million).”
“Project grant disbursement is revised downwards by 34 percent to reflect the optimistic projections of 2023. This adjustment in project grant will help to match estimates as close as possible to its anticipated outturns,” he stated.