By Nasratu Kargbo
The Parliament of Sierra Leone has passed into law the Finance Act of 2024, a move that was preceded by Legislators expressing divergent views on the Bill especially with regards to commodity taxes.
The House was totally divided, with some stressing that the increase in taxes will cause suffering on the citizens, as prices of commodities will shoot up. Others were of the opinion that monies generated from these taxes will help the government generate revenue, which will help in achieving its 'Feed Salone' agenda.
Deputy Leader 2 of the Opposition, Aaron Aruna Koroma said “The hardship our people are facing is a government induced hardship”, and drew reference to WFP’s Food Security Monitoring System Report which says 78% of the country’s population is food insufficient, and 20% being severely food insufficient.
Speaking on the tariff increment on Iron rod and cement, the MP said tenants will be affected as all house owners including those who had built houses years before, will even raise rent. The MP also said that the increase will affect low income earners who would want to build theirs.
Chairman of the House Finance Committee,Francis Amara Kai-Samba said there was no tax on rice and that taxes on cement and iron rod were reduced, explaining that the intention for those decisions was to ensure the burden on the masses is reduced, but stated prices in the market remained high and the intended purpose was not achieved. Hence he said, the reason for restoration of tax on rice, and increase in tariff for cement and iron rod.
He explained that consultations were done on the bill and the measures taken are intended to boost state revenue generation.
Western Area Urban MP Alpha Amadu Bah said tax is essential in running government, but cautioned government to be mindful of its expenditure. “The government is not sensitive towards its expenditure, the problem the government is facing is not issue of revenue it is bad public expenditure” Bah said.
He said the Minister of Finance Sheku Fantamadie Bangura had stated that despite the duty on rice the price was still up, hence reason for the tax on rice. MP explained that aside importation tax, there are other three ancillary taxes which have led to government’s duty free efforts not reflecting in the market, stressing that adding importation tax will worsen the situation. Bah asked that those ancillary charges should have been reduced and zero duty maintained in order for the no tax on rice to reflect in the market.
“Mr.Minister, I want to advise, what we need is a radical modification of public expenditure not aggressive taxation” he said.
Responding to Bah and Deputy Opposition Leader 2, Moyamba District’s Mustapha Sellu said the suffering experienced by the people is due to external factors such as the Ukraine-Russia war. He said the Bill’s sole intention is to generate revenue and develop the nation.
Leader of Government Business, Mathew S. Nyuma said "We are altering taxes based on the current circumstances to address the economic challenges of the country".
He said that for the past years their government had never levied tax on rice importation and emphasized that increasing taxation is the only way to improve the economy. The Bill passed into law on 9th November is for the Financial Year 2024
COPYRIGHT © 2023 Politico (13/11/23)
