By Sorie Ibrahim Fofanah
Finance Minister, Ahmed Fantamadi Bangura says that revising the 2022 Budget was necessary to stabilize the country’s economy
He made the statement at a press conference organized by the Ministry of Information and Civic Education and held at the Ministry of Foreign Affairs and International Cooperation, in Freetown.
He said some of the budget allocations for Ministries, Departments, and Agencies (MDAs) needed revision because potentials for revenue expenditures and the things that drive growth, “have been shifted” as a result of some of the developments that are happening outside Sierra Leone, such as the persistent war in Ukraine.
He said 2022 ended with a huge deficit and they have since started thinking how to consolidate the economy in public finances, which all prompted the need for the Supplementary Budget.
Bangura stated that they introduced the Finance Act in April 2023 with some new tax measures that focus on closing loopholes. He also said that they introduced the minimum tax which is to be paid based on the profits corporations that companies make per year.
Still, on the minimum tax, the minister said companies and businesses have to declare overall operations of goods and that if the company or business does not make a profit, then it will be asked to pay a minimum tax. Also, if the company or business makes a profit, it will be required to pay tax accordingly which he said is a way of discouraging some of the loopholes.
He also mentioned the Goods and Services Tax (GST) that has also been revised, saying the new one gives a lot of exemptions that he said mostly to protect the poor people. He said that this new GST covers those aspects that were not originally captured.
Bangura stated that they have also made tax waivers on some essential items that affect the public, such as rice. He said they have introduced several other taxations on measures that have to do with what he called the "sin tax’’ on cigarettes, alcohol, and tobacco.
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