By politico staff writer
In an effort to streamline and provide a legal and regulatory framework to guide the award of duty and tax exemptions, the Parliament of Sierra Leone has enacted the Tax and Duty Exemption Act 2023.
The Act has consolidated the legal framework for regulating and administering exemptions in Sierra Leone.
It has not only taken cognizance of Sierra Leone’s international obligations and the need to promote national policy objectives, such as driving investment into specific sectors, increasing exports, promoting job creation, creating value addition as well as increasing production, but it also includes rationalizing the country’s current exemptions privileges. It has also introduced sanctions to limit discretion and potential abuse, and where necessary consolidate existing statutory provisions relating to exemptions for efficient administration and enhancement of domestic revenue.
Other noteworthy clauses include the provision of exemptions for caring and support to persons with disability and emergencies; imports and procurement of all goods and equipment for protecting, safeguarding, and up-keeping a wildlife conservation zone, such as the Tacugama Chimpanzee Sanctuary.
Presenting the Bill to Parliament, Deputy Minister of Finance, Bockarie Kalokoh stated that, it will develop a modern tax incentive regime that is consistent with local, regional, and international laws and standards. He also said that it will improve transparency and accountability in the process of administering tax exemptions, and reduce leakages through abuse of exemptions thereby increasing the country’s revenue base.
He further stated that the new Act will support the government’s objective to increase domestic revenue mobilization from 13.61% of GDP in 2022 to 20% by 2027.
This commitment was also manifested in Executive Order No. 1, a study on the patterns of duties and tax exemptions, the development of a Tax and Duty Waiver Policy approved by the cabinet, and now the enactment of the Duty and Tax Exemptions Act 2023.
Copyright © 2023 Politico (26/04/23)
