8 Comments
Shops and businesses in Sierra Leone’s capital, Freetown, have been forced to close their doors due to the burden of heavy taxes imposed by the government. The situation remains in limbo as it’s unclear when these businesses will be able to resume operations.
As part of the government’s efforts to staunch revenue leakages, the installation of electronic machines is being implemented to ensure that not a single cent is lost. This initiative aligns with President Julius Maada Bio’s manifesto of blocking fiscal inefficiencies. Unfortunately, shop owners have placed blame on the National Revenue Authority (NRA) for exacerbating the harsh economic environment that they face daily.
Facing the brunt of this economic crunch, many traders have made the painful decision to leave Sierra Leone in search of more business-friendly climates in neighboring countries, with Liberia being the preferred destination to escape harassment and undue hindrances.
The situation has only worsened with a recent press release from the NRA, which imposes fines on taxpayers failing to integrate or complete the integration processes with the Electronic Cash Register (ECR) system. The press release warns that non-compliance will result in a penalty of 250,000,000 Leones and potential revenue loss assessments. The NRA, represented by Commissioner-General Ibrahim Brima Swarray, has given taxpayers a two-month grace period starting from October 20th of this year, during which the integration process can be facilitated for a minimal fee. Failure to meet this deadline will invoke penalties stipulated by law.
This shutdown marks the latest in a series of protests by businessmen in Freetown, with the introduction of the Goods and Services Tax (GST) system in 2022 being a major point of contention. Under this system, electronic machines will record sales and collect taxes, primarily affecting various businesses such as supermarkets, hotels, restaurants, bars, and more. The business community has expressed deep discomfort with these changes, viewing them as a form of economic exploitation, particularly in these times of economic hardship.
In response, businesses have grumbled that the NRA’s insistence on using these machines is an unnecessary burden and a potential exploitation of their economic challenges. Failure to issue a GST receipt generated from ECR machines can result in severe penalties, including hefty fines or imprisonment. To keep business afloat, GST taxpayers are required to notify the NRA of any issues during the installation and operation of these machines within 24 hours. They must also regularize their registration information to obtain a new Taxpayer Identification Number and install the machines promptly.
The relationship between the government and traders has deteriorated significantly due to these measures, leading to a dire business environment, with businesses folding under the strain. Business owners are now calling on the government to protect their businesses rather than impose further hardships.
[…] Source link […]
Sierra Leone government have to get sympathy to his people,in the other hand it won’t affect the business people but the customers, and who is the customers.
I think this is a good idea from the government. This should have been there long ago but as we know it that everything has a beginning. In other countries, whenever a foreigner opens a business is one’s country, a citizen must be a counterpart. How many foreigners from Lebanon , China, India, Guinea, Nigeria, Ghana, etc., are operating in Sierra Leone without any significant representative of a Sierra Leonean?
This is ridiculous!
They Govt should revisit this Law of taxation in other to save the small scale business holders.
The government has chosen the right direction for the taxes. The country was losing a great deal of income which was directly going into the pockets of some crooked senior government officials. The tax system introduced should not make the business people close their businesses. It is mostly the consumers that are going to pay for the excess taxes. They are closing businesses because, they are now being monitored by the system to control prices.
“Heavy taxes”, the writer says. He/she should come to Europe, or any of the developed economies to experience heavy taxes in real time. Citizens in those countries pay taxes on everything. From using public restrooms, tickets, haircut, fuel, food, everything under the sun! The same goes for electronic cash registers in every business place – restaurants, supermarkets, shops, convenience stores, kiosks, you name it. It is through taxation governments generate revenues, which they use to provide services, develop their countries, and have good/developed economies. Only in Sierra Leone would business owners go on strike for something that’s normal in every country on this planet called Earth! Nah only Salone citizens expect services en development, but nuh whah pay for ahm, in form of taxes, so government go geh money for do dat for dem! Oh Salone!
Businesses need to pay taxes, but they need to get something for it. They shouldn’t pay taxes for Maada Bio to charter private jets. An obvious Bio supporter references taxes overseas. Well, in those countries, they have electricity. They are not paying excessive amounts to run generators. They have good roads, they have running water. The government is raising taxes, not to further inprove lives, but because it doesn’t have money partly due to mismanagement and corruption, so no benefit to tax payers. And now Bio wants to borrow 1.5 billion to build a bridge, with no money to pay for it, just so he can say he built a bridge. How much will taxes be raised on the people, how much more will be added to the cost of an airline ticket?