The Parliament of Sierra Leone on Tuesday, 4th April 2023 passed into law, The Finance Act 2023.

The bill was sponsored by the government of Sierra Leone through the Minister of Finance, Ahmed Fantamadi Bangura.

Among other objectives, the bill is predicated on the Government’s commitment to domestic revenue mobilization, in light of improving economic aspirations, payment of salaries and building confidence in growth amidst multiple crises across the world.

According to the Betts Firm, the new finance act introduces 6 new key revenue enhancing measures as listed below:

– Minimum Alternate Tax at 3%
– Tourism Levy at 2%
– GST on Fee-Based Financial Services
– Stamp duty from 0.5 to 2%
– Annual Circulation Levy for Vehicles & Kekehs of SLE 200
– Removal of GST exemption for solar products

Minimum Alternate Tax (MAT)

– Ensures companies pay 3% of their turnover/sales as Corporate Income Tax, even if they make a loss
– CIT payable is the higher of normal CIT calculated on the profit of 25% or the MAT
– MAT Credit is allowed to be offset in a year when the normal CIT exceeds the MAT for 10 years

Digital Services

– All forms of Satellite TV and digital content such as Netflix will attract GST at 15%.
– Digital gambling services will also attract GST at 15%

Major GST Exemption changes

– Removal of exemption for Port Services for the import of rice, Plant & Machinery for agriculture, manufacturing and mining, Solar Energy Products and Free & promotional calls/data

– Re-introduction of GST on fee-based financial services

– Introduction of a GST on insurance, except life insurance

Stamp Duty

Increase from 0.5 to 2% of property value for conveyances and title deeds.

Introduction of Tourism Levy

A new consumption tax paid by consumers at 2% on the sale price of accommodation, food, drinks and other related services offered by tourism establishments.

Annual Circulation Levy

A new Annual Circulation Permit Levy is introduced. This levy will be paid yearly by all vehicles, including cars, trucks, buses, boats, airplanes, and three-wheelers (Kekehs).