By Sorie Ibrahim Fofanah
The Financial Secretary, Mathew Dingie, says monies collected from tax on imported rice will be used for an agricultural development fund that is to be established by Government.
He made the statement at the Government Weekly Press Conference held at the Ministry of Foreign Affairs on 14th November, 2023.
Dingie said the Ministry of Finance will put systems and structures in place that would be transparent in ensuring that taxes collected on rice are used to aid agricultural activities in Sierra Leone.
“We will work with the Commissioner of National Revenue Authority (NRA) to make sure rice vessels that dock at the water quay pay the actual tax (5%) for their amount of tons of rice imported,” he added.
He went on to say the public will be informed on a monthly basis on the amount of money collected from rice taxation, that will go to supporting home based agricultural activities.
Speaking about the Finance Act, the FS said it’s something that is essential for the livelihood and sustainability of the nation, saying if they do not enact it now they would never solve the problem of government losing revenue on rice. He said even though government removed taxation on rice it has not stopped its price from increasing. “We were losing eighteen million dollars every year all these while that we have not been collecting tax on rice,” he maintained. Dingie noted that there are other good things in the Finance Act.
Dingie said tax on rice is not a new phenomenon, saying “it has been there,” and that what they are now doing is what he called restoration. He recalled that government last removed tax on rice in 2009 by10%.
Dingie said the removal of tax on rice over the last fifteen years has not yielded dividend, but benefitted the rice producers and importers at the expense of the citizens of this nation.
As a way to address the dependence of importation of rice, the Financial Secretary said “we have to grow our food,” stating that the private sector will be producing rice in Sierra Leone for a low cost
Government needs to have sources of revenue to run its affairs, the FS said “So, what government is doing is to ensure that it has sources through taxes collected from sectors to provide services that they citizens need,” Dingie said.
On the 10th November, 2023, the 2024 Financial Act was tabled in the well of Parliament by the Finance Minister, Mohamed Fantamadi Bangura. Members of Parliament will be having a five-day debate on the said Act.
Copyright © 2023 Politico (17/11/23)
