By Abdulai Fasineh Dumbuya
The Financial Secretary Mathew Dingie has said that in the face of global shocks, the only way to be resilient as a Government is the adoption of tough policies to be able to deliver basic services for the people of this country.
Dingie was speaking in a Media interview explaining the Finance Act of 2024 that would lay the foundation for the implementation of the government budget and guide revenue generation and expenditure.
He acknowledged the impact of the shocks, saying the budget will lay the foundation for solid economic recovery, and called for the implementation of measures that will enable the country to grow its own foods, take care of its own social services and infrastructure without totally dependent on the outside world, which is exactly what he said the 2024 budget intends to address.
He said the budget would address shortfalls, hence the need to automate the country’s resources by 2024.
“The reason that we usually experience shortfalls is because most of our tax collection processes are done manually. So the time taxpayers take to comply will lead to the shortfall,” he said.
He went on to note that their projection reforms for financial management systems for tax collection would address leakages or minimize inefficiencies in the system, highlighting the benefits of good investment in technology.
“Bringing new interventions and investing in technology will therefore close inefficiencies in the system. We projected that more improvement in the technology and administering of taxes will generate one percent GDP in revenue by 2024,” he said.
Dingie reiterated that the private sector is also a key focus of the Finance Act of 2024, and for the government, its focus is how it can support the private sector by giving them the right kind of incentives and exemptions but at the same time paying their taxes expected of them.
He explained that they have also made amendments to the Income Tax Act by harmonizing taxes on imported and locally manufactured beverages.
He said the Goods and Services Tax (GST) which was for businesses with an annual turnover of 100 million Leones old Leones has been increased to 500 million old Leones.
“Now if your turnover does not reach such an amount in a year, then you are not compelled by law to register to be a GST agent for government. That will make small businesses do their buying and selling. But once your turn-over in a year reaches the stated threshold, you are therefore bound to register,” he said.
He said that the public needs to understand that GST is a recoverable consumption tax, wherein people are charged for what they are sold with only the difference going to the government.
The Financial Secretary pointed out that another important provision in the Act is to ensure people who want to go into agriculture to support the government’s “Feed Salone Project” can bring tractors and machinery that will be exempted from GST. He said such an endeavor is geared towards attaining food sovereignty in the country.
Copyright © 2023 Politico (15/11/23)
