The National Revenue Authority (NRA), in partnership with the Budget Advocacy Network (BAN) and the Ministry of Finance, has released a comprehensive report titled “Tax Exemptions in Sierra Leone’s Industry Sector: Who Wins, Who Loses?” The launch event, held at the Ministry of Finance’s Main Conference Hall, hosted key stakeholders from international organizations and civil society groups.
NRA Commissioner-General Mrs. Jeneba J. Bangura underscored the dual role of tax exemptions in attracting foreign direct investment and stimulating industrial growth, while also expressing concern over their escalating fiscal impact. Mrs. Bangura further noted that between 2018 and 2023, tax exemptions in the industrial sector surged from NLe 177 million to NLe 3.5 billion, a nearly 20-fold increase. “During the same period, the sector’s GDP contribution grew fourfold, from NLe 8.9 billion to NLe 35.6 billion, with the mining sector being the primary beneficiary” she noted.
The Commissioner-General highlighted that forgone revenue from these exemptions now constitutes 60% of domestic revenue, raising critical questions about their efficiency and sustainability. She identified challenges within the current tax incentive framework, including a lack of transparency and policy inefficiencies, amongst others.
She reaffirmed the NRA’s commitment to address these issues by collaborating with the Ministry of Finance and other stakeholders to establish a more targeted and accountable tax incentive regime. Key recommendations according to Mrs. Bangura included and not limited to focusing incentives on high-growth sectors that promote job creation and technology transfer, enhancing transparency through public disclosure of beneficiaries, and implementing performance-based incentives.
Mrs. Bangura reaffirmed the NRA’s dedication to refining tax policies that support sustainable development, and minimize revenue losses while maximizing economic benefits.
She commended BAN for their insightful report and called for collective efforts to implement the proposed recommendations, striving for a fair and efficient tax system capable of financing Sierra Leone’s development aspirations.
