By Mabinty M. Kamara
A report by Budget Advocacy Network (BAN) has indicated low revenue generation by the Kailahun District Council (KDC) for the financial year 2022.
The report dubbed the ‘2022 Kailahun own source revenue’ indicated that the revenue target for KDC in 2022 was NLe 2,478,979 (two million four hundred and seventy-eight thousand,nine hundred and seventy-nine New Leones) out of which only NLe 793,615 ( seven hundred and ninety-three thousand, six hundred and fifteen) was collected accounted for 32%. It added that the District Council did not collect 68% of its approved revenue for 2022.
Fees for evacuation which summed to 295,550 New Leones (two hundred and ninety-five thousand, five hundred and fifty) exceeded its revenue target of NLe176,400 (one hundred and seventy six thousand, four hundred) for 2022
“Property rate is the highest revenue stream in 2022 . However, it noted that based on the 2022 assumption, Kailahun District Council has the potential to increase its revenue by almost 300% in 2023 and more in the subsequent years.”
The report also indicated that the council did not generate anything out of the projected NLe100,000 revenue for 2022 and the Local Tax projected for NLe49,410 (forty-nine thousand, four hundred and ten) were also not collected. Business Licences accounted for NLe 87,344 (Eighty seven thousand, three hundred and forty-four out of the projected NLe274,871 (two hundred and seventy four thousand, eight hundred and seventy-one).
The low revenue generation by the council, according the report, is largely due to the fact that the June 2023 elections affected tax enforcement, the inability of the taxpayers to distinguish between Council and Chiefdom, poor tax education by the council during the financial year 2022, inadequate involvement of Civil Society Organisations and other community leaders in tax education and own source revenue generation and the deliberate refusal to pay local taxes on the excuse that the Council has not been transparent and accountable in the collecting, recording, and reporting of its own source revenue.
To address the situation which according to the policy analysts at Budget Advocacy Network Abu Bakarr Tarawallie has an implication on the development of the district, the researchers proffered recommendations.
“The guidelines for the use of own source revenue state that at least 35% of own source revenue should go to service delivery. However, this was not the case for the Kailahun District Council as all of the own source revenue expenditure for 2022 goes to administrative expenses,” it indicated.
The recommendations include the hosting of a regular radio discussion programme targeting public education on taxation and the use of own-source revenue by the Council. Also it was noted that a Mobile Personal Address System be used by council to target citizens and the general public with awareness raising and sensitisation messages on own- source revenue mobilisation and use.
It was also agreed to involve the Paramount Chiefs as traditional authorities in tax education and revenue generation, and for the District Stakeholders Meetings serve as important tool to get the tax payers onboard. Holding of revenue generation meeting with business leaders in the district,earmarking own source revenue and for “development projects financed by the council from their own source be labeled clearly “from your source revenue,” were the other recommendations made.
The mapping according to the researchers looked at all revenue streams collected in 2022 and those to be collected by the Kailahun District Council in the future in a bid to assess which of the revenue streams was collected fully, partially, and not collected at all and other potential sources and their viability.
The report is supported by the government of Ireland through Christian Aid Sierra Leone.
Copyright © 2023 (09/10/23)
