By Winston Ojukutu-Macaulay Jnr.
It is Saturday afternoon and I find myself in the heart of Dove Court market in the East End of Freetown. It is considered to be the largest informal market in Sierra Leone. My visit was to get a better understanding of why such a large group of mostly women, young and old are not within the national taxation radar.
Before this visit, I had been to the Waterloo market along the Freetown-Masiaka highway, King Jimmy market in the centre of the Freetown Business District, and indeed, Kroo Town Road market, which by the way is my wife’s favourite market. The noises are the same, the body language between buyers and market women and butchers identical and of course, the prices vary depending on who is buying at that particular time.
I must hasten to say that I had also paid courtesy calls to the “Belgium Boys” at Pultney Street and Lightfoot Boston Street and just further down the road, “Sweissy market” which I must say, I passed three to four times a day regularly, hustling to butter my bread. And I am sure it will not be too surprising to you to know that the rhythms and choreography of these two places are the same. And that like the women and men in the other markets, taxation in all its shapes and forms is a totally foreign language to them, but as they clearly stated, if the opportunity arises, they are willing to learn so that they too can contribute to the national cake and indeed relieve the burden on the few tax payers in the formal sector.
My questions to all of them were direct, provocative and sometimes considered intrusive. But I was determined to get an understanding of why such a large number of people don’t pay taxes in Sierra Leone, and whether they subscribe to the view that the best way of increasing Sierra Leone’s tax base is the introduction of a new presumptive tax which can capture thousands of Sierra Leoneans in the informal sector.
Taxation experts and Accountants in recent times have argued that presumptive taxation can be levied on each respective small and informal business depending on its annual turnover, and that, this kind of taxation can be best collected using a mobile phone as has been the case in Kenya where it has been effectively implemented in recent years.
In Sierra Leone today government and, indeed, corporate institutions are yet to fully utilize the many platforms a mobile phone offers in terms of collecting revenues and providing commercial services to the populace at large.
Standing in the middle of a small crowd of about fifteen market women and men at Dove Court Market the other day, the first thing I noticed was that each one of them had more than one mobile phone, and I challenge anyone to say that this crowd is not a credible picture of mobile phone ownership statistics across the country.
Zainab Dumbuya of Mountain Court was adamant as to why she cannot afford to pay any other taxation apart from her regular market dues to the Freetown City Council. Taking out a small book, she flashed it in front of my face saying “I am working towards paying for my three children’s school fees come next month” and that if she had to pay any more tax to the National Revenue Authority (NRA), she would not be in a position to pay school fees for her children.
Then I asked: “What about the children’s father? And without any hesitation she replied: “I lost my first husband in the war and my present husband is unemployed. He was made redundant few months ago at the Sierra Leone Ports Authority. So I have to come out every day, including on most Sundays, to sell so that my family can survive.”
“But do you know that if you pay a small amount as tax to government, your husband might end up getting another job because the government will have more money to spend and help create an environment where investors can come to Sierra Leone and open up businesses that can employ your husband?” I asked.
“Foreign Investors don’t come for people like us,” a voice from behind hit me. I turned around to reply, but another voice came flying with the same question I had heard over a dozen times since I started asking why most people in the informal trade did not pay taxes.
“Why should we pay tax when the government already has so much money from donors and those people who mine our diamonds, gold, iron ore and even now take our fish away?” Another asked. And before I could form a reasonable answer to the question, a statement was thrown at my face: “Pa Ernest has been building roads, fighting to bring light, water and other things without coming to ask us to pay for more taxes. The Pa knows very well that we are poor people.”
“I have been cornered by a fish-monger” was the first thought that came to mind, as they all waited anxiously for my response to both the question and the statement. But my second thought was quick to remind me that these questions and statements revealed the challenges the government, but more so the National Revenue Authority (NRA) faces in, first, educating the public about the benefits of paying taxation and, secondly, in the battle to collect more taxes from the public.
No doubts in the mist of hard-working women and men trying to make the extra penny, and the Okada riders, taxi drivers and truck drivers negotiating their way recklessly as traffic police and wardens bite their fingers thinking of new ways to continue getting their shares of the day’s taking, without Mr. Anti-Corruption knowing, the panels of my brain reminded me that I needed to recharge to face up to the day-time residents of Dove Court Market. But 45 minutes was enough for me. So I looked around, shook hands, promised to come back, then paid for a few goods I had gathered. I then jumped on a waiting Okada I had earlier on hired for the day.
And as the Okada rider (under strict control) negotiated his way back to my office, my thoughts swung to Bathurst Street and Wellington Street…..from where most of the work of the National Revenue Authority (NRA) is carried out day and night. First, Kudos to the Commissioner-General, Madam Haja Kallah-Kamara and her hard-working staff for coming top-of the list for service delivery to the country. It confirms that despite the technological and human short-comings as tax collectors, tremendous efforts are being made to generate more revenue to support the government’s Economic Development and Poverty Reduction Strategy, which now comes under the Agenda for Prosperity.
As I jumped off the Okada, I had a few exchanges with the rider whilst thanking him for a good ride. With the heavens about to open up, the Okada rider, with no expression on his face, bade me goodbye saying: “I heard you at the market…..why should we pay any more tax, with newspapers reporting about corruption at the National Revenue Authority (NRA)?”
A fair question from an unexpected quarters, but he did not wait to get the other side of the story when it comes to newspaper reporting. He might have learnt something as it seemed he’s a newspaper reader. It is indeed true that in recent weeks there have been several news reports about “corruption” and “poor leadership” at the NRA, and that the Anti-Corruption Commission (ACC) is investigating several alleged corrupt practices at the NRA.
However, what have been left out of all of these reports are the efforts being made by the NRA leadership led by Commissioner-General, Haja Kallah-Kamara. A determined and highly-committed woman cooperating fully with the ACC to get to the bottom of what has been going wrong with our revenue collections even before she became Commissioner-General of the NRA. And because of her determination and commitment, she was recognized by the state just last week as one of the top three heads of government agencies to have performed well in service-delivery to the general public.
In the coming months, as the Commissioner-General intensifies her battle against corruption within the Authority, she MUST not forget that the people’s attitude towards taxation is the biggest challenge to overcome. And that for the Agenda for Prosperity to succeed government at both central and local levels must support the NRA to undertake mass sensitization campaigns where discussions can underscore the importance of paying taxes while clearly spelling out the punitive provisions of the law for noncompliance.
Winston Ojukutu-Macaulay Jnr. is the Managing Partner of Sasikom Capital Partners © 2013. Email: corporateafrica1@gmail.com
© 7 August 2013
