By Saikou Ceesay
The Gambia Revenue Authority (GRA) on February 8, 2011 issued a directive to parastatals ordering them to levy tax on gross earnings including allowances on all categories of employment income,be it monthly,weekly, and daily,The Daily News reveals.
According to sources,Public Utilities Regulatory Authority (PURA), Gambia Public Procurement Authority(GPPA), among other, have been warned."It is employer's statutory duty to deduct the correct amount of tax on all employers, as stipulated in the Act," the letter stated.
GRA further warned government institutions that it's am offence for making false or misleading statements, returns that would result in tax shortfall (Section 207 Income and Sales Tax).However,scores of unnamed employees who spoke to The Daily News on the issue raised eyebrows over the development.
"Tax should not be levied on allowances,"one of them said, stressing that it left them with no other choice that to be left stranded begging for life from drivers.
"What is the benefit of these allowances when we are deducted to an extent that we couldn't cater for our fears,phone allowances,professional allowances,house allowances,"employee at one of the parastatals told this paper.