By Sorie Ibrahim Fofanh
In order to implement the tax policy and revenue administration measures articulated in the Medium Term Revenue Strategy (MTRS), the Government is set to impose an excise tax on gambling and casino services at a rate of 10 percent of net betting revenue.
The Finance Minister, Mohamed Fantamadi Bangura was presenting the 2024 Financial Year (FY2024) in Parliament on 10th of November, 2023.
He said the development needs of Sierra Leone are huge and that efforts must be made to address them, in light of severe constraints brought about by limited fiscal space.
As part of efforts to improve fiscal space, the Government prepared the MTRS, whose implementation commenced with the Finance Act of 2023.
The minister spoke about the difficulties and uncertainties surrounding the economic environment and spillovers to the economy warranted by the high cost of living. He said food prices remain high largely attributed to the war in Ukraine, inflicting hardship on many low-income countries.
These adverse global developments have contributed to the difficult socio-economic situation in Sierra Leone characterized by weak economic growth, limited fiscal space, higher inflation, high debt burden, and sharp depreciation to the Leone.
“In January this year, I presented a Supplementary Budget aimed at bringing back public finances to a sustainable path and maintaining the recovery from the ongoing war in Ukraine and other related shocks. However, large debt service payments combined with high inflation and exchange pressures on the budget have narrowed the policy choices and presented difficult policy tradeoffs,” the Minister noted.
Bangura reported NLE 4.6 billion (5.9 percent GDP)-the total domestic revenue collected from January to June 2023, with a shortfall of NLE 166.4 billion. He further stated that underperformance in Income Tax, Goods and Services Tax (GST), and customs and excise duties all contributed to the shortfall.
“Total domestic revenue will amount to NLE 10.6 billion (13.1 percent of GDP) by the end of 2023,” he said.
Copyright © 2023 Politico (15/11/23)
