Brother B Jones
your observations are well noted and with good intentions I assume but when there is
lack of trust in the customs officers and the Revenues drop due to this added
control the general population will only suffer from obvious price increases.
I support some sort of controls but at a GRADUAL pace and in small steps at a time.
Again as you said time will tell.
Habib

"B.M.Jones" wrote:

> Hi Bro. Habib and Sis Jabou,
>
> The BIVAC pre-shipment issue is very contentious and there
> is no guarantee that imposing another layer of bureaucracy
> will solve the problem of underinvoicing. From what i have
> been reading in the newspapers, the BIVAC pre-shipment
> announcement was a suprise to the private sector. While I
> agree that the government needs to maximize its revenue
> collection, my personal opinion is that there should have
> been more consultation between the government, the
> operators and the chamber of commerce. I don't want to
> believe that ALL importers are engaged in underinvoicing.
> Could the culprits not be identified and then appropriate
> action taken. Why should the righteous be penalized and
> suffer with the evil.
>
> If the government keeps squeezing the private sector in the
> guise of raising revenue, it is potentially
> counterproductive and the reverse can happen. The
> commercial, economic growth and employment prospect of the
> economy can be seriously hampered.This is against the
> backdrop that 65%-70% of revenue comes from customs
> revenue. This starkly contradicts the government's stated
> objective of vision 2020 which is to have a viable private
> sector led Gambian economy (inconsistency).
>
> BIVAC are working for profits and the question to be asked
> is BIVAC the only alternative available to the government
> to solve the problem of revenue collection?. The $250 (paid
> in foreign currency puts another extra pressure on the
> exchange rate)and whatever fees, is paid for by the private
> sector and no businessperson will accommodate the cost
> without passing it on to consumers i.e. the urban and rural
> poor that have to purchase the goods and services provided
> by importers. In otherwords the economic cost of BIVAC will
> be passed on to the poor consumers. Inevitably prices will
> have to rise to cover the cost of employing BIVAC.
>
> I also read from the newspaper that importers from
> neighboring countries are stopping to use the Banjul
> facilities because there will no longer be any incentive
> and economic benefits to them from  importing through
> Banjul - another source of revenue foregone because the
> reduction of imports will ultimately mean a reduced revenue
> base for the government. So the assumption that BIVAC
> automatically increases revenue and stops underinvoicing is
> not 100% certain without even considering the
> administrative delay and cost in terms of valuable time.
>
> My personal preference and what i would have loved to see
> is the government engaging in consultation and dialogue
> with the private sector through the chamber of commerce.
> After all that's what the GCCI is there for: to act as a
> bridge between the government, private sector and
> consumers. That could be another least costly alternative
> whereby Gambians will be solving a principally Gambian
> problem than inviting foreigners who will take their
> profits and when things are not going well leave the
> country and we have to pick up the pieces - remember the
> electricity saga with MSG and UHC or whatever the name was.
>
> The last statistics i saw on the Gambia, the level of taxes
> from international trade was down on its pre 1994 level. By
> inviting BIVAC is it also an admission on the part of the
> government that the C&E have failed in executing their
> duties or is there a lack of confidence in their abilities.
> The problem can also be more structural than that.
>
> Recently on the L we have been taking about reducing the
> level of poverty in Gambia both absolute and relative
> poverty, urban and rural poverty as well. Improving the
> living standards of the average Gambian can only take place
> within the parameters of a growing and well managed economy
> that provides opportunities.There is a limit as to what the
> government can do to directly employ Gambians, that's why
> it is said that a government should concentrate on
> providing public goods i.e health and education and
> ensures throught its polices the "necessary and enabling
> environment for the private sector to function
> efficiently". The majority of labor force are employed
> outside the government sector and we cannot kill the golden
> goose that lays the foundation to reduce poverty. How can
> both foreign and domestic investors be attracted when the
> tax burden on them is high. We also have to take into
> cognizance the fact that Gambia is competing with
> neighboring countries for scare foreign dollars and it is
> quite obvious that investors will invest in countries where
> there is less administrative bureaucracy.
>
> I don't want to prejudge what BIVAC can achieve, but only
> time will tell.
>
> Cheers
>
> Basil
>
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