President Julius Maada Bio has officially signed the Finance Act 2024 into law following its passage by Members of Parliament in December 2023.

The Act includes a range of fiscal measures aimed at enhancing government revenue, according to a senior government official.

Key provisions of the Act include a 5% import duty tax on rice starting in 2024, which will increase to 10% in 2025. Additionally, a 20% tax on cement, a 5% tax on cooking gas, and a 10% tax on iron rods have been established. The Act also reduces the minimum Alternate Tax (MAT) rate from 3% to 2%, applicable only to loss-making companies.

The legislation further stipulates that income from digital products and services provided by companies like Google, Meta, and Amazon will now be taxable in Sierra Leone. Adjustments to withholding tax rates have been made, with dividends, management and professional fees, and lottery winnings now subject to a 15% rate.

Moreover, the government has introduced a 1% education levy and increased withholding tax rates for contractors, from 5.5% to 6.5% for residents and from 10.5% to 11.5% for non-residents. Excise duty rates have been harmonized between domestic and import sectors, excluding beer and stout, while excise duty on plastic products and a 10% tax on gambling, betting, and lottery have also been introduced.

The registration threshold for Goods and Services Tax (GST) has been raised from Le100 million to Le500 million. The government has reintroduced GST exemptions for plant and machinery in agriculture, manufacturing, mining, and petroleum sectors, as well as duty exemptions for certain manufacturing elements. Additionally, demurrage days have been adjusted from weekdays to official working days.

However, the introduction of the 5% tax on rice has sparked public outrage, with citizens expressing grave concerns over its impact on their daily lives. The price of a bag of rice has reportedly surged to between Le1,020,000 and Le1,250,000, depending on the type and quality. Many have pleaded with President Bio to reconsider the tax, citing the escalating cost of living as unbearable.

Mohamed Sawaneh, a teacher, voiced the frustrations of many citizens, stating, “Inasmuch as the government needs resources for development, they should consider the high cost of living and the challenges we face. Some of us find it extremely difficult to make ends meet, let alone cope with these harsh conditions.”

As the government seeks to balance revenue generation with public welfare, the implications of the Finance Act 2024 will continue to unfold amid increasing discontent among the populace.