The Cement Importers and Agents Association of The Gambia has dispatched a petition to relevant Gambian authorities, appealing for a review of the government’s harmful and burdensome cement tariffs.
The association in the petition expressed its “deep concern” about the hike of the duty on a bag of imported cement from Senegal by 500%.
A little more than one year ago, the Gambia government raised the levy on a bag of cement from Senegal from 30 to D180. The government said this levy was introduced to shield local cement producers such as Salam, Jah Oil and Gacem from entities dealing in imported bagged cement.
However, the Cement Importers and Agents Association of The Gambia said the trade levy has ramifications on both the cement trade and the country’s economy.
“This tax has placed a heavy burden on the cement trade and the wider economy,” the association said in its petition sent last week to the secretary-general at the office of the president, permanent secretary at the ministry of finance, head of the Gambia’s revenue administration, PURA, director of the Gambia Competition and Consumer Protection Commission and clerk of the Gambia’s legislature.
The association could not understand why only Jah Oil and Salam are allowed to import bulk powder cement for re-bagging while its members continued to be burdened by the D180 levy on a bag of imported cement.
“At present, only a few companies are permitted to import bulk cement. However, these companies do not manufacture cement locally; they also import, just as we do,”the association maintained.
According to the association in its petition seen by JollofNews, the government’s cement tax policy has created a monopoly situation in the cement market, “forcing many businesses to close down and depriving thousands of Gambians of their livelihoods”.
“As a direct result of this monopoly and the heavy tax burden, cement prices have risen to unprecedented levels-often D500 or more per bag, depending on the retailer and location,” stated the petitioners. “This increase has had devastating consequences for the nation, including stalled construction projects, closure of factories and shops, job losses for countless workers and overall weakening of the national economy.”
The association stated that it “strongly believes” that the current situation benefits only a few companies at the expenses of the masses.
It, therefore, appealed to the government to restore the tax on a bag of cement to its previous rate of D30.
The association said a downward revision of the duty will restore a level-playing field for all importers, ensure affordability, rejuvenation of small and medium-sized enterprises and stimulate economic growth and promote job creation.
“We trust in your commitment to fairness, economic stability, and the wellbeing of the Gambian people. We, therefore, respectfully urge you to take swift action on this matter,” read the petition submitted by Farafenni-based prominent cement trader also the secretary-general of the Gambia Cement Importers and Agents Association Alagie Touray.
