By Alpha Abu
Members of the Sierra Leone Association of Manufacturers (SLAM) have called on the Minister of Trade and Industry to intervene following the decision of the National Revenue Authority (NRA) to levy Excise Duty on locally produced energy drinks.
The manufacturers who claimed they were expressing their concern through the Sierra Leone Chamber of Commerce in a letter to the Minister of Trade and Industry described the industrial sector as vulnerable “to high operating costs, high energy costs, weak purchasing power of consumers, unfriendly tax environment, high regulatory compliance cost and the uncontrolled influx of smuggled products,” the letter reads in part.
The manufactures who are now requesting for a meeting with the NRA “to find a lasting solution”, said they drew the attention of the Minister in 2020 over the reintroduction of Excise Duty and the implications for industry and the economy.
It was particularly noted that the ”imposition of excise duty means that the ex- works cost of locally produced energy drinks will be increased by both by the excise duty addition and by the GST on the excise duty as GST is based on the excisable value of goods produced,” it reads.
The local manufacturers after highlighting the series of setbacks the excise duty will create for them and the economy, believe there has been a reduction in demand for energy drinks produced locally as imported ones are cheaper since they were being smuggled into the country from neighbouring Guinea, with claims that 70% of the market has been lost to the imported ones.
They believe many people have as a result lost their jobs at the factories and the supply chain. The manufacturers say with governments around the world making available stimulant packages for their economies, the government should not be seen introducing policies that impose additional tax burdens and making manufacturers uncompetitive. They pointed out that their comments were intended to support the government’s drive to improve the manufacturing sector that would enhance fiscal stability which encourages new investors.
Copyright © 2021 Politico Online (16/04/21)
