Commissioner General of the National Revenue Authority (NRA), Jeneba Bangura has revealed that the organization is taking proactive steps to eliminate the revenue losses incurred from generous concessions granted to mining companies.

According to her, by sharing detailed reports on tax expenditures and waivers, the NRA aims to raise awareness of the economic impact these concessions have on Sierra Leone’s domestic revenue.

Bangura speaks on the NRA’s collaboration with the International Monetary Fund (IMF) to bolster revenue collection through enhanced pricing strategies and audits. The initiative she said includes working alongside major mining firms to assess local pricing against international standards.

She further underscored the mining sector’s vital role in the national economy, noting its substantial contributions to revenue. However, she expressed deep concern that Sierra Leone is not reaping the benefits it should, primarily due to overly favorable agreements that disproportionately favor mining companies.

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She went further to disclosed NRA’s strategy to engage with key stakeholders, including parliamentarians and the Ministry of Finance, to address this issue, ensuring that future agreements are equitable and compliant with national laws.

She highlighted the importance of involving smaller-scale mining operations in these discussions to ensure fair contributions to domestic revenue.

The discussion also touched on the energy sector, where Bangura noted that while tax exemptions are frequently granted to facilitate government projects, compliance with Goods and Services Tax (GST) collection remains a critical concern.

She expressed optimism that ongoing efforts in digitization and stakeholder engagement will unlock new revenue streams and foster a sustainable financial future for Sierra Leone.

Addressing the interconnected challenges of debt and energy, Bangura emphasized the need for strong commitments and resource allocation to enhance domestic revenue mobilization, especially in light of positive trends observed in 2023. Despite progress, she stressed that more work is necessary to improve tax compliance and implement recent finance acts aimed at addressing both revenue and debt challenges.

Bangura acknowledged the NRA’s support for the energy sector through various tax exemptions, particularly for projects involving entities like EDSA and Karpowership. However, she also recognized that there is ample room for further growth in this sector. The NRA plans to enhance compliance measures without introducing new taxes in 2025, focusing instead on improving efficiency through automation and data analytics-strategies that have proven effective since the reforms initiated in 2019.

The automation of processes is crucial for the efficient collection of GST, which has historically been a key revenue source. The NRA is committed to improving compliance in this area, particularly noting that small taxpayer compliance currently sits at a low 20%. Initiatives such as the implementation of a tax stamp system to combat smuggling and enhance excise tax compliance were also discussed.

In conclusion, Bangura expressed optimism about the potential for improving efforts revenue mobilization as the year progresses into 2025, reinforcing the NRA’s commitment to leveraging data and digital tools for enhanced tax administration outcomes.