This final project is a partial requirement to obtain a training certificate for the online course on Mobile Sector Taxation offered by the GSMA. On this final project, we investigated the issue of taxation in the mobile sector of The Gambia.

1. Mobile Sector Taxation
in The Gambia
Presenter: Serign Modou Bah
The Gambia
Ministry of Information &
Communication Infrastructure

2. Content of Discussion
Introduction
Types of Taxation in the Mobile Sector
Tax Policies & Regulatory Frameworks
Mobile Broadband
Impact of Taxation on The Mobile Sector
Challenges & Recommendations
Conclusion

3. Introduction
Taxation- It’s a system where government effectively manages revenue for
people through levying dues on the products and services they buy/offer and spend
the managed revenues better for the greater good of all.
Mobile Sector Taxation- In the Mobile/Telecommunication sector, taxes are
imposed on both consumers (end users) and operators (mobile network operators)
in the form of end users tax (devices, usage, and activations) and operators tax
(network equipment and operation).
Mobile Sector, Economic Growth & Development – According to
GSMA Intelligence , in 2016, mobile technologies and services generated 4.2% of
Global GDP, equivalent to around $3.3 trillion of economic value. Paying attention
to taxation will help governments maintain this trend and grow better.
Next Pages (4-6): What is driving these economic values?

4. Introduction

5. Introduction (cont.)

6. Introduction (cont.)

7. Introduction (cont.)

8. Types of Taxation
in the Mobile Sector
Types of Consumers Tax in The Gambia
o Sales/VAT Tax
o Import Duties on Handheld Devices
o Income Tax
Types of Operators Tax in The Gambia
o Corporate Tax
o Import Duties on Network Equipment
o Regulatory Fees including license and spectrum fees
o Other Fees

9. Types of Taxation
in the Mobile Sector
Types of Consumers Tax in The Gambia
o Sales/VAT Tax
 These are taxes incurred indirectly by consumers when
purchasing and using a handset device.
 In The Gambia VAT is charged at 15% on Standard
Rated Items and zero percent on necessity commodities.
 Mobile Product and Services attract up to 3% higher VAT
than other goods and services in The Gambia
 VAT is applied to all people at the same rate of tax
 VAT may have a number of negative consequences for
Mobile Consumers.

10. Types of Taxation
in the Mobile Sector
Types of Consumers Tax in The Gambia
o Import Duties on Handset Devices
 This is the biggest source of government revenues
 It is charged at 20% on the Cost, Insurance, ad Freight
(CIF) value of the imported good.
 Customs processing fee of 1% of CIF and ECOWAS tax
of 1.25% are also payable.
 A minimum duty of is paid on some items that have
impact on the environment.
 The cost of handset devices is a determining factor of
mobile access for consumers.

11. Types of Taxation
in the Mobile Sector
Types of Consumers Tax in The Gambia
o Income Tax
 These are taxes levied on the income of
employees/businesses
 It constitute 3% of the total tax revenue in The Gambia
 Employees paying income tax at the higher rate pays
PAYE up to 29% of their total income.

12. Types of Taxation
in the Mobile Sector
Types of Operators Tax in The Gambia
o Corporate Tax
 Corporation tax/corporate income tax/revenue tax is
based on the tax on the profit and turnover.
 All MNO’s in The Gambia pay corporation tax on
either the tax adjusted trading profits or on gross
revenues.
 Corporate tax in The Gambia ranges from 35% earlier
down to 30% in 2016.
 In some cases, New MNO entrants are given a two
years Special Investment Certificate (SIC)/Tax Break/
Waiver.
 The percentage of corporate tax represent 35% of the
total tax in The Gambia. (Global Average is at 25%)

13. Types of Taxation
in the Mobile Sector
Types of Operators Tax in The Gambia
o Import Duties on Network Equipment
 The Gambia is not a manufacturer of network
equipment, thus all network equipment used by MNO’s
are imported in to the country.
 Import duties are levied on all Mobile Operators
Network Equipment, except government owned, which
are subjected to waivers.
 Import duties is charged at 20% on the Cost, Insurance,
and Freight (CIF) value of the imported item.
 Exercise tax or duty of 25% is added to establish the tax
base on which VAT of 15% is charged
 Custom processing fee of 1% of CIF and ECOWAS tax
of 1.25% are also payable.

14. Types of Taxation
in the Mobile Sector
Types of Operators Tax in The Gambia
o Regulatory Fees
 Regulatory fees are paid to the Public Utility and
Regulatory Authority (PURA) of The Gambia annually.
 While Spectrum and License Fees are paid to The Gambia
Revenue Authority (GRA), the institution responsible for
collecting taxes.
 Fees (including regulatory, spectrum and license) account
for 26.79% of fees and taxes paid by the ICT sector and
4.52% of total ICT revenue.
 Cellular Operators in the GSM Bands 900MHz &
1800MHz pay a new license fee of $15 Million and a
spectrum fee of $600,000 for a duration of 5 years

15. Types of Taxation
in the Mobile Sector
Types of Operators Tax in The Gambia
o Other Fees
 Municipality fees are paid to all local government
authorities for the installation of new mobile network
sites.
 An annual one-off charge is paid on average approx.
$1277 regardless of the number of towers in an area.
 GRTS Levy and Other: Mobile operators pay Educational
levy to support tertiary Education in The Gambia, which
amounts to approx. $851.
 Telecommunication Terminal Dealer license is paid by
dealers annually with the sum of $213.
 Annual International Gateway New License Fee of
$100,000 & $25,000 International Gateway Spectrum Fee.

16. Types of Taxation
in the Mobile Sector

17. Tax Policies & Regulatory
Frameworks
In The Gambia there two institutions solely for Taxation in the Mobile Sector, which are
The Gambia Revenue Authority (GRA) and The Gambia Public Utility Authority (PURA).
GRA collect taxes on VAT, Import Duties, Income Tax, Spectrum, License Fees and other
fees, while PURA collect the regulatory and other related fees. (The following are the Tax
Policies)
Income and Value Added Tax Act, 2012
The PURA Act, 2005
The Information and Communication (IC) Act, 2009
Wireless Telegraphy (Regulatory Charges for
Communication Facilities and Services) Regulations, 2005
National Information & Communication Infrastructure
(NICI) Policy
Universal Service Fund Framework Developed

18. Mobile Broadband
in The Gambia
What is Driving the Broadband Boom in The Gambia???
Simple, Affordable and Effective Taxation System
Friendly Regulatory Frameworks and Environment
Effective Investment in Mobile/Broadband Network Infrastructure

19. Mobile Broadband
in The Gambia
Mobile/Broadband Network Operators in The Gambia
Since 1984
Government
Since 2001
Private
Since 2001
Government
Since 2009
Private
Since 2006
Private

20. Mobile Broadband
in The Gambia
Investment in Mobile/Broadband Network Infrastructure
Friendly Tax System
Leads to more Investment !!!

21. Mobile Broadband
in The Gambia
Investment in Mobile/Broadband Network Infrastructure
Friendly Tax System
Leads to more Investment !!!

22. Mobile Broadband
in The Gambia
Mobile/Broadband Network Infrastructure in The Gambia
GAMTEL : National Fibre Broadband Infrastructure & Wireless Internet
Government 4G-LTE Network: Connecting Wireless Internet to Urban offices
GAMCEL: GSM, GRRS, and 3G (Voice and Internet Provider)
AFRICELL: GSM,GPRS, 3G and 4G-LTE (Voice and Internet Provider)
QCELL: GSM, GPRS, 3G and 4G-LTE (Voice and Internet Provider)
COMIUM: GSM, GPRS, EDGE (Voice and Internet Provider)

23. Mobile Broadband
in The Gambia
Key New Developments in the Mobile Sector
Africell launches LTE services, competing with QCELL
Gamtel takes control of International Gateway, but planning to liberalize it
Qcell launched its Qodoo Mobile Money Service, follows with LTE
Government launches National Broadband Network (NBN) Project
International Network Management Centre (IINMC) opens, access on ACE Cable
Africell contracts Alepo for Data Solutions
Gamtel reports further decline in revenue
Legislation prepared to create a new National ICT Agency
Gamtel Contracts Huawei for Fibre Backbone Project
The Banking Sector adopted Online and Mobile Banking Applications

24. Mobile Broadband
in The Gambia
Yield of Investment in Mobile/Broadband Network Infrastructure
Africell
Comium
Qcell
Gamcel
Pie indicates
that more
investment in
Mobile
Network
leads to
more gain in
subscription

25. Mobile Broadband
in The Gambia

26. Impact of Taxation on
the Mobile Sector

27. Impact of Taxation on
the Mobile Sector
Facts about Taxation in the Mobile Sector of The Gambia
The Gambia has the lowest Spectrum Fees in its Sub Region
No Activation and Connection Tax on Consumers in The Gambia
New MNO’s Entrants are given Special Investment Certificate (SIC),
which is a Tax Break/Waiver on Corporate Tax
Taxes are paid directly to banks, which reduces tax complexity
Sometimes Tax incentives are given to Investors, especially foreign
investors who wish to invest heavily

28. Impact of Taxation on
the Mobile Sector
Analyses
Considering the fact that The Gambia has the lowest spectrum fees in
its Sub Region, it provides tax incentive in the form of Special
Investment Certificate to New MNO’S Entrants on Corporates Tax,
and there’s no sim card activation fee & connection fees on
consumers. (This Indicates that):
Investment on Mobile/Broadband Network Infrastructure has also
increased over the years driven by lower tax/tax incentives and
friendly regulatory environment in The Gambia. (Which Leads to):
Both Mobile and Internet Penetration Rate has increased rapidly over
the years in The Gambia and will continue to increase. (Then What?):

29. Impact of Taxation on
the Mobile Sector
Analyses
According to GSMA and World Bank: A 1% increase in Mobile
Penetration could lead to an increase in the GDP growth rate of
0.28%, while a 1% increase in Internet Penetration Rate can lead to
an increase of up to 0.077% in the GDP growth rate.
The World Bank has also found that every 10% increase in
Broadband Penetration can accelerate economic growth by up to
1.38%
In The Gambia, the Mobile Sector contribution to the GDP has been
increasing from 2004 to 2007, the decline from 2008 to 2009, then
started to increase steadily again from 2010.

30. Impact of Taxation on
the Mobile Sector
Analyses
Due to lower taxes levied on the Consumers end and no taxes levied
on sim card activation & connections, affordability to use mobile
handsets with a subscription service increases, which increases the
overall mobile subscription in The Gambia.
Due to affordable spectrum fees, some tax incentives on MNO’s, and
friendly regulatory environment, MNO’s are able to get the required
revenue to re-invest in Mobile/Broadband Network Infrastructure.
Due to more Mobile/Broadband/Internet Penetration and network
coverage, products & services deliver are greatly improved, and
more tax & economic revenues and Jobs are created in The Gambia.

31. Challenges
& Recommendations
Taxation Challenges in the Mobile Sector
No payment of regulatory fee to the regulator is common practice
Non Compliance, particularly from government owned MNO’s
The Absence of Universal Service Fund in The Mobile Sector
No Timely Review and Update of Tax Policies on the Mobile Sector
Inadequate use of IT Systems/Application to simply tax payment

32. Challenges
& Recommendations
Recommendations on Mobile Sector Taxation to Authorities
The government should come up tax avoidance and compliance
mechanisms to ensure that taxes are paid and paid at the right time
The government should review and redesign it’s tax system to be
inline with international best practices and also be rethinking on how
to tax emerging technologies such as AI, IOT and 5G etc.
Affordability is still a challenge to consumers, government should
consider more tax incentives at both the consumers end and the
MNO’s end, so as to promote more access.
There should be proper IT Systems/Applications accessible
everywhere for tax payment and processing, this will simplify the tax
whole system and help in mitigating corruption in the tax system.

33. Challenges
& Recommendations
Recommendations on Mobile Sector Taxation to Authorities
The government implement the already formulated Universal Service
Fund Framework, this will help generate the required revenue that
can be to invest in Mobile/Broadband Network Infrastructure,
particularly in the rural areas, where connectivity is limited.
The government should encourage domestic regulated/voluntary
roaming in The Gambia, this help reduce the connectivity gap in the
short term, fuel invest in Mobile Network Infrastructure and generate
more revenue for MNO’s.
The government should be reviewing and updating its tax related
policies to make sure that tax laws are always friendly for investors.

34. Conclusion
We highlighted the definition of Taxation and its relationship with
Economic Growth and Development.
We presented some Global & Regional Statistics on Mobile Broadband
We also presented the status of Tax Policies in The Gambia
We discussed on the status of Mobile Broadband in The Gambia
The Impact of Taxation on the Gambia Mobile Sector was discussed
The challenges in the Mobile Sector were identified and
recommendations to address the challenges were suggested.

35. References
1. https://www.statista.com/chart/4022/mobile-subscriptions-and-world-population/
2. http://www.5gamericas.org/files/7515/2174/1662/01_LTE_Global_Marketshare.png
3. The Mobile Economy Sub Saharan Africa 2017 – GSMA Report
4. https://www.statista.com/statistics/498199/number-of-mobile-cellular-subscriptions-in-
gambia/
5. Fees and Taxation Study on The ICT Sector in The Gambia-2016
6. Pura Annual Report and Financial Statement 2015
7. Wireless Telegraphy (Regulatory Charges for Communication Facilities and Services)
Regulations, 2005
8. Income and Value Added Tax Act, 2012
9. Digital Inclusion and Mobile Sector Taxation 2016 – The impacts of sector specific taxes
and fees on the affordability of mobile services.

36. Conclusion (Cont..)
The End !!!
Thank you for giving us the greatest
gift, ‘your attention’.