By: Kadijatu Bangura, Reporter D.S
The National Revenue Authority (NRA), in collaboration with the Budget Advocacy Network (BAN) and the Ministry of Finance, has unveiled a significant report analyzing tax exemptions within Sierra Leone’s industrial sector. Titled “Tax Exemptions in Sierra Leone’s Industry Sector: Who Wins, Who Loses?”, the report was presented during a gathering of key stakeholders at the Ministry of Finance’s Main Conference Hall.
The report highlights several key recommendations, including the need to direct tax incentives toward sectors with high growth potential for job creation and technology transfer. Additionally, it calls for enhanced transparency by publicly disclosing the beneficiaries of tax exemptions and implementing performance-based incentives to ensure accountability.
NRA Commissioner-General, Mrs. Jeneba J. Bangura, addressed attendees, underscoring the complex role that tax exemptions play in the economy. While these exemptions can attract foreign investment and stimulate industrial growth, Mrs. Bangura voiced concern over their rising fiscal burden. Between 2018 and 2023, tax exemptions in the industrial sector surged from NLe 177 million to NLe 3.5 billion, marking a nearly 20-fold increase. She noted that during the same period, the sector’s contribution to the nation’s GDP rose significantly from NLe 8.9 billion to NLe 35.6 billion, predominantly benefiting the mining sector.
Mrs. Bangura highlighted a troubling statistic: the revenue lost due to tax exemptions now accounts for 60% of Sierra Leone’s domestic revenue, raising pressing questions about the effectiveness and sustainability of the existing tax incentive system.
In her remarks, Mrs. Bangura identified challenges such as a lack of transparency and inefficiencies in policy implementation. She reiterated the NRA’s commitment to reforming the tax incentive framework in partnership with the Ministry of Finance and other stakeholders.
Emphasizing the need for reform, Mrs. Bangura pledged the NRA’s dedication to refining tax policies that promote sustainable development, aim to minimize revenue losses, and maximize economic benefits for the country. She commended the contributions of BAN for their comprehensive report and called for a collaborative approach to implement the recommended changes, striving for a fair and efficient tax system that aligns with Sierra Leone’s developmental goals.
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