Sister Jabou you are right but some sort of double checking and counter control
has to begin somehow as long as there are dishonest customs officers, who should
be doing their duties in the best interest of the nation. I have had countless
problems and threats when I tried to pay the CORRECT customs duty on some imported
items . You are technically forced to succumb to the illegal demands or risk not
getting your merchandise on time or in one piece.
This way we are all on one level plain BUT again as all of agree the end users
i.e. the average Gambian customers suffer by paying a higher price.
Well only God can help us with such predicaments because it is just a cycle and
whoever gets in takes their turn for the OSSUSU.
Regards
Jabou Joh wrote:
> Dear Basil,
>
> This is exactly the point. This move will discourage importers from bringing
> their goods into the Gambia, and l have already heard that some have already
> started taking their shipments to neighbouring countries like Bissau.If you
> consider the fact that a lot of the wholesalers who import into Gambia sell
> the bulk of their goods to the buyers from the neighbouring countries
> anyway, what this move has done is give these neighbouring countries the
> customs revenues as well as deprive the average Gambian transportation
> business owner of the revenue he or she would have earned from transporting
> some of the goods to neighbouring countries for the buyers who used to come
> to Gambia to shop. Clearly, this move does hurt the Gambian consumer and our
> prospects for an improved economy as well as discourage the engagenment in
> commerce by the business person whose resources are already very limited.So
> my opinion also is that it was not a very well studied move.
>
> It is unfortunate and very true that over the years, many business people
> have defrauded the government by finding all sorts of ways to avoid paying
> any or the appropriate amount of duty on their goods, but like you, l feel
> that they could have explored another means of solving this problem.The
> problem is also not just the importers, but corrupt customs officials who
> accpted bribes as opposed to executing their duties honestly, and this in
> turn is compounded by poor salaries etc, etc, Ad Infinitum.
> l know it is not feasible for customs officials to have to go through every
> shipment piece by piece, but even though l am not an economist, l know there
> must be some way of estimating the value of certain goods. Baring that, why
> is it that the customs themselves did not take up this task that this French
> company is doing and keep the revenues in the country? For example, they
> could have just gone through shipments piece by piece and charge the importer
> the extra labour cost if they do not produce an invoice with a reasonable
> value for their goods.
> I agree that encouraging the private sector by legislation that helps and not
> hinders their progress is the only way to eliminate massive poverty, but
> somehow, those in a position to bring this about have completely missed the
> point, and this is very unfortunate.Another lesson to prove that one cannot
> govern properly without imput from those whom they are there to serve.
>
> Jabou
>
> 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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