Value Added Tax (VAT) in the Gambian Tax System and the effectiveness of its collection mechanisms

For the Gambia to support its economic and human development, tax revenues must rise. The best tool for accomplishing this is a general consumption tax like Value Added Tax (VAT), as they have less of an adverse effect on growth than income taxes. To make them usable, VAT design must be enhanced. In addition to raising income, extending the VAT base would lessen the administrative burden and economic inefficiencies associated with most taxes. In a similar vein, to enhance the tax system and end tax evasion by taxpayers who regularly follow the law, a well-designed tax system is required. The main finding of this study is that the Gambia may become a more attractive destination for both domestic and foreign investors if it maintains an atmosphere that is conducive to investment and supports equity and accountability in the tax administration. The Gambia Revenue Authority (GRA) was established to enhance the mobilization of Government revenue while providing effective tax administration and sustainability in revenue collection.