By Dadson A. Musa
Taxation, dues and other legal means of collecting money helps government carry out its functions. In first world countries like America, England, China, etc. they take it very seriously and try very hard to avoid leakages. In fact, penalties for evading taxes are heavy and uncompromising. Taxation is the lifeblood of governments the world over. In Sierra Leone, our tax system is too loose and is left in the hands of individuals who can manipulate it to their personal benefits. The tax system in Sierra Leone is not properly or fully digitized which makes way for grand corruption. Our borders, airport and seaports are porous and so government does not realize much in revenue generation rather people are getting away with not paying what they should pay to government. And individuals in high places are making fortunes at the expense of the rest of us. So, there is need for overhaul and drastic reforms in our tax system if government must stop going out to beg or borrow for the country to be sustained.
As there is so much development work to carry out in the country but government is cash strapped and donors or international partners are not ready to release funds to us as they are themselves faced with global economic negative impacts.
Government of Sierra Leone has resorted to raising more money to fund their developmental activities by unusually taxing more and more. It is not wrong for the government to tax more but it is being done at a time when the economy is in ” pretty bad shape” and inflation has skyrocketed. Sierra Leoneans are scraping to survive. The burden of economic hardship is palpable. The global economy has not gotten better so Sierra Leone is reeling from the shocks also especially when the war between Russia and Ukraine rages and Israel and Hamas are also at war.
To maximize revenue in this country without hurting us citizens firstly government must make sure foreign businesses and companies must pay their fair share of taxes. Imagine, Sierra Rutile was not paying a particular amount of money to government since early 2000. Now that they have been asked to pay, they have resorted to redundant workers, how unfair. Other businesses are also mooted to be in connivance with NRA officials to underpay taxes or even wipe out what they should pay. Other mining companies are getting away with paying full taxes under the guise or excuse that government has not provided water supply, good roads and electricity. But it has been proven that they are using that as a cover to underpay taxes.
Secondly, doing away with tax waivers is another measure that can help us citizens a lot. Tax waivers are being grossly abused here in Sierra Leone and this is starving government of funds to carry out development activities. Big businesses are hiding under tax waivers to deprive the people of Sierra Leone of much needed funds. Tax waivers are only meant for humanitarian and relief goods and nothing less.
Thirdly full digitization of payment system is but necessary as it is going to avoid tax money going to the wrong hands. Monies meant for the state should go directly to the right bank accounts and not through sticky palms. The state is losing a lot through third party payments and government is left dry and has to go and lobby for compact MCC money with strings and conditionality attached.
Finally, our marine resources are not making it to the European market which is depriving the country of much needed foreign reserve. Also, pirates are carting away our fishes and other marine resources which has left us in penury. If we get the full revenue from our marine reserve, then there will be no need for government to over tax the citizens. These and many other leakages are leaving government with no option but to over tax citizens that should be economically pampered and protect. It is high time government stopped making citizens preys.
Copyright –Published in Expo Times News on Friday, March 15th , 2024 (ExpoTimes News – Expo Media Group (expomediasl.com)
