By Saio Marrah
The Parliament of Sierra Leone has on Wednesday 17th November 2021 debated and passed the Finance Bill 2022 into law. It provides for the amendment of laws relating to the imposition and alteration of taxes, duties, rates, and other related financial matters.
In the new Act, the taxation on the importation of cement has been reduced from 20 to 10 percent and for iron rods, 10 to 5 percent in a bid of reducing their price in the market.
The Act also creates a special account for the National Disaster Management Agency (NDMA), to respond to emergency issues only, the account according to the law would be accessed by the office of the president only for the said purpose.
It also makes room for a third party (private agency) to be hired to collect taxes, which has been overdue with some amount of percentage to be levied on the defaulters.
The new act also makes provision for an agreement approved by the Defence Council in relation to the purchase of military hardware, not to go through the processes of the National Public Procurement Agency (NPPA), for security reasons.
The new minister of finance, Dr. Dennis K. Vandy, while reading the bill for the second time in the well of parliament said among other things, the bill would support the sound and prudent fiscal management of the economy. He also said that it will amend various Acts to enable the government to effectively manage the country’s economy.
In his submission during the debate, the Paramount Chief Member of Parliament from the Tonkolili District, Bai Kurr Kanagbaro Sanka III, after expressing his satisfaction over the pre-legislative hearing, called for the creation of funds for the NDMA, but that it should be managed by the office of the president.
A member of the main opposition party in parliament, Lahai Marah, of constituency 042, Falaba District, after expressing his hope that it will aid better management of the economy, also pointed out that high taxation on basic commodities will affect the ordinary people.
However, the minister in his response, noted that in as much as the government wants to alleviate the hardship on the people, it has to use those taxes to take care of other needs like school, health, agriculture among other things.
In his submission, Ishamail Sama Sandy, of constituency 080, Bo District, called for the reduction of taxes on the importation of flour and butter from 10 to 5 percent.
Another Member of Parliament from the ruling party, Festus Mohamed Lansana, of constituency 015, Kenema District, pointed out the importance of amending the existing laws to improve the welfare of the people. He added that it will help in the effective management of the economy.
The leader of the main opposition party in parliament, APC, Chernor Maju Bah, said some aspect of the document has “circumvented” the existing laws passed by the parliament. He called for the bill to focus more on revenue generation. He also joined his colleagues in the advocacy for price reduction on certain commodities for the benefit of the people.
The Leader of Government Business in the house of parliament, Mattew Sahr Nyuma, of constituency 019, Kenema District, while responding to the concerns of his colleagues said the minister derived its power from the constitution to control agencies that fall under his watch.
Copyright © Politico Online 17/11/21
