Government Revenue Increased by 24% in 2021
Domestic revenue analysis contained in the General Purpose Financial Statements (GPFS) has shown that the Government revenue in Fiscal year (FY) FY2021 was Le 7.3 trillion (Le7,394.4billion), increasing by 24% over the amount of Le 5,974.4 billion collected in FY2020.
The data contained in the GPFS explains the unaudited cash flow operations and cash balances of the Consolidated Fund of the Government of Sierra Leone for FY2021. This compares favourably against the budget target of Le 6,416.1 trillion, with a positive variance of about Le 978.2 billion equivalents to 15%.
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Income tax revenue contributed Le2,430.6 billion or 33% of the total domestic revenue for the financial year, whereas Goods and Services Tax (GST) revenue amounted to Le 1,213.0billion or 16% of total domestic revenue.
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Custom and Excise (C & E) Receipts Le 1,564.0billion or 21% and Mineral Revenues Le 523.2billion or 7% of total domestic revenue respectively.
Fisheries revenue accounted for Le 211.8billion which is 3% of total domestic revenue.
In FY2021, income tax receipts totaling Le2,430.6billion was the main source of domestic revenue, of which the major components were Personal Income Tax Le1,874.1billion, Withholding Tax-Government Contractors and Free Health Care Tax amounted to Le93.7billion and Le8.5billion respectively.
However, total income tax receipts of Le2,430.6billion increased by 22% or Le423.4billion over that of FY2020 and also compared favourably with the Budget target of Le2,405.9billion, resulting in a positive variance of Le 24.7billion.
Personal income tax revenues increased by Le317.4billion an equivalent of 20% compared to Le1,556.7billion in 2020.
All other component such as PAYE-Government Employees, Withholding Tax-Free Health Care, and Withholding Tax-Government Contactors had a significant increase of 30%, 17% and 10% respectively.
Awoko Newspaper reports that, the Goods and Services Tax (GST) totaled Le1,213.0billion in FY2021, increasing by 19% above that of FY2020. According to the Accountant General, this reflects the revenue collection.