By Mohamed Jaward Nyallay
The Sierra Leone Chamber of Agri-business Development (SLaDEC) has given a 21 day ultimatum to the Environment Protection Agency (EPA) to review the taxing formula they use to tax Agro-businesses in Sierra Leone.
SLaDEC, which represents private interests in the Agro-business industry made the call following the closure of Bennimix’s food processing plant in Bo last week. Bennimix is a local company that produces baby formula made mainly with ‘Benni’ (Sesame seeds).
In a press release last week, EPA said they closed the production plant because of the lack of compliance by Bennimix to get an Environment Impact Assessment (EIA) for license and the waste they produce during production.
The Executive Director of SLaDEC, Ahmed Nanoh, told journalists in a press conference on Thursday that the process EPA used to take its decision against the company lacked transparency and accountability.
“EPA’s matrix is a one size fits all and it is unfair to us. We want to review it in 21 days. We want a specific, tailor made tax system for the Agro-businesses,” said Mr Nanoh.
“Do you want to tell me that the same matrix you use for mining and oil companies is the same matrix you should use on Agri-businesses?” he questioned.
EPA is a government agency that is responsible to regulate companies in line with standards that deal with environmental safety. As part of their work they are supposed to do an assessment and charge a fee for EIA license. In the case of Bennimix, EPA did the assessment and charged the company US$7, 800 because they failed to get an EIA license.
The matrix of the taxing formula consider things like noise levels, amount of waste, the category of hazardous waste and more.
According to the EPA Regional Manger South, Aiah Wurie Kembay, they have been negotiating for the last couple of years with the company before the closure last week. He said the matrix has been fair even though it’s a ‘one size fits all’ system.
“This is the only matrix we have been using for all businesses. It is not unfair to them, if they are taking it to be unfair, I think we have been more lenient with them. Because what they are paying is not even commensurate to what other agri-businesses are paying. They spoke to us and we reduced their fees drastically,” Kembay told Politico in a telephone interview.
The Chief Executive of Bennimix, Dr. Joseph Bahsoon said the company has survived all the odds over its 40-year existence in the country, but that it might not survive EPA’s tax regime.
Dr Bahsoon said he has since negotiated and paid US$4,450 to reopen his business.
“We have been in this country for over 40 years. We have survived inferior imports and food aids to this country, but we might not survive the EPA.”
“If you go to our production plant, all we use are low and simple technology. We have no solid waste because it is recycled. Our noise level is low. Everything positive to this country is Bennimix. We are still the cheapest baby food in the country,” Dr Bahsoon added.
Bennimix targets a market of up to 350,000 babies between the ages of 6 and 24 months. Bahsoon said the competition from imported baby formulae alone has suffocated their growth over the years.
Despite the strong statement from SLaDEC, EPA are not fazed. When asked about the ultimatum from SLaDEC for EPA to review its taxing system, Kembay dismissed it. He said: “They don’t have the right to give us ultimatum. The government of Sierra Leone is working on it. Our EPA Act is currently under review as I speak to you. A lot of things are happening that are positive.”
The current stalemate has the potential of affecting Sierra Leone’s effort in diversifying its economy through agriculture. Agriculture is one of the biggest contributors to the country’s annual Gross Domestic Product (GDP).
© 2019 Politico Online
