The Gambia’s approach to tobacco taxation deserves to be judged by more than the money collected by the government. As Gambia Revenue Authority Commissioner General Yankuba Darboe rightly observed, the ultimate measure of tobacco taxation should include whether fewer people smoke, fewer young people take up the habit and fewer citizens suffer preventable tobacco-related diseases.
This is an important distinction. Tobacco is unlike many ordinary taxable commodities. While its sale generates revenue, its consumption carries substantial health and social costs. The government may therefore collect more from tobacco while simultaneously spending more on treating diseases associated with its use. Revenue gains alone cannot tell the full story.
The figures presented by the GRA are encouraging. Between 2012 and 2016, tobacco imports reportedly fell by about 60 percent, while government revenue from tobacco increased substantially. This suggests that stronger taxation can potentially discourage consumption without necessarily undermining government revenue.
But taxation cannot work in isolation. Higher taxes may create incentives for smuggling and illicit trade if enforcement does not keep pace. The GRA’s efforts to strengthen border controls, compliance monitoring and digital excise stamps are therefore important. Effective enforcement must accompany higher taxation if the policy is to achieve its intended objectives.
There is also a need for better and more regular data. Policymakers should know not only how much tobacco is imported and how much tax is collected, but also whether smoking prevalence is declining, particularly among young people.
The Ministries of Health and Finance, the GRA, health professionals, civil society and development partners must therefore work together. Tobacco taxation should be periodically reviewed in light of inflation, incomes, consumption patterns and health outcomes.
The objective should be clear: not simply to collect more from tobacco, but to create conditions in which fewer Gambians become addicted, fewer families bear the consequences of second-hand smoke and fewer lives are lost to preventable disease.
About The Author
