By Nasratu Kargbo
Sierra Leone’s Parliament has ratified an Agreement that enables the National Revenue Authority (NRA) to know the exact amount of products being manufactured by some companies and also those being imported into the country, in order for companies to pay the right amount of tax to the NRA.
Titled ‘Track and Trace Agreement’ between the government of Sierra Leone and SICPA S.A, it was ratified on the 28th October 2022 after headcount voting was done involving members of parliament that saw those in favour, carrying the day.
Speaking earlier on the 27th October 2022, in respondto concerns raised by the Speaker of Parliament Chernor Abass Bundu and some MPs, the minister explained that the country has been losing close to one hundred million dollars because the nation cannot track and trace goods effectively to collect what is to be collected in the tax annum.
Explaining the purpose of the agreement,First Deputy Minister of Finance Sheku F.Bangura explained that the agreement will enable the relevant authorities to know the production data of goods producing companies in the country, and the exact number of goods be imported.
According to the Bangura the agreement will help the country generate more revenue, because NRA will have access to the real data. He stated that some companies under report their production data to NRA in order for them not to pay the right dues.
He said that there would be no increase in tax, noting that there are specific goods that will be tracked and traced, some of which are alcoholic beverages, water, cigarette, petroleum products and goods that have effects on the masses.
The minister noted that the agreement is to capacitate NRA.
Responding to the comments on how the agreement will affect the masses, Bangura said that they have spoken with SICPA to ensure that the fees will be reasonable enough, not to cause distortion in prices of goods sold to the public.
Constituency 042 MP Lahai Marrah said that SICPA will levy fees per product, emphasizing that the fees that excludes the taxes that the companies would have to pay NRA.
“That tax rate plus the fee that SICPA will be charging, is more burden on the consumer” said Marrah. He noted that at the end of the day, companies would add prices in order for them to make profit.
He said it is important for government to generate revenue, but noted that it should not forestall businesses, especially when prices of goods are astronomically high.
The Acting Leader of Government Business Bashiru Silikie stressed the country under- collects taxes because NRA lacks the ability to track all the businesses in the country.
He said iunder declare, stating that when SICPA will have tracked, traced and stamped all goods, producers and importers cannot beat the system.
“To have a sustainable economy, you should be able to generate your own revenue,” said Silikie
Commending the agreement, MP representing Constituency 132 Ibrahim Tawa Conteh explained that it will tackle the problem of illicit trade, substandard goods, tax evasion and under-declaration, which he said hugely, affects revenue generation in the country.
Conteh noted that products such as tobacco and water are imported to the country in huge quantity, but that one does not know the taxes paid for them. Conteh added that if such an initiative can give concise details huge revenue can be generated from it.
He added that with the tracking system, goods meant to be sold in the country can be tagged and taxed, noting that the country loses a lot because there is no proper tracking system.
MP for Constituency 059 Abdul Karim Kamara explained to Politico that companies will have to pay fees to SICPA for stamping the products, and also pay tax, noting that his fear is that the companies will increase prices which will affect the masses.
He said the economic hardship in the country is too much, stating that the commodities in the market are expensive, and that adding burden on the companies will definitely reflect on the price of their products.
Kamara noted that he doubts SICPA’s credibility, explaining that other countries have terminated contracts signed with them due to alleged fraud and corruption that the company indulges in whilst executing their work.
Copyright © 2022 Politico Online (31/10/22)
