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Corporate Income Taxation in The Gambia
A Study of Revenue and Investment Elasticities
Sneha Menon, Asta Jobe
in Partnership with the Gambia Revenue Authority
March 8, 2018
In this paper, we conduct a brief literature review, benchmarking exercise and illustrative elasticity calculation to understand the impact of corporate tax rates on revenue and investment in the Gambia. We find that Gambia’s tax rates are slightly lower than the regional average and that in the last decade, tax revenues and investment indicators do not respond significantly, negatively to the fall in corporate tax rates. We suggest a deeper analysis of the tax base and maintenance of a longer time series analysis/higher frequency to structurally estimate the elasticities and to develop a more efficient tax regime.