By Aruna Rashed Toma Bangura
The Secretary General for the Sierra Leone Importers Association, Rashid Conteh has called on President Julius Maada Bio not to give his assent to the new Finance Act of 2023.
Speaking to the Africa24 at his office, the Secretary General for SLIA, Rashid Conteh said the Ministry of Finance is charged with the mandate to produce the finance act.
He said traditionally, the Ministry of Finance will hold a consultation with the private sectors and other institutions, adding that this tradition shows good will and gives confidence to them as partners to development.
According to Mr. Conteh, the private sectors provide the funds that government uses to pay for their flagship projects, pay salaries to workers and to run the affairs of the government. And that the private sector provides employments, create investments and generate wealth for the State.
He said that without a vibrant private sector, the government will solely rely on donor partners for funding as it is the current situation in Sierra Leone.
However, the SLIA Secretary General, Rashid Conteh has revealed to this medium that the Ministry of Finance flouted its normal tradition to hold consultation as the private sector and other institutions were not consulted before the bill was taken to parliament and ratified by Members of Parliament.
But some are only informed when it is about to be signed by President Bio.
“We were taken by surprise with some of the changes to the previous act,” he said.
Adding that as law abiding citizens and major partners to development, they contacted their line Ministry of Trade and Investment for a discussion in a bid to raising their concerns and register their dissatisfaction about the finance bill of 2023 which will soon become a law.
Importers’ sectary said the Minister of Trade and Investment, Dr. Edward Hinga Sandy is a responsive minister who has an open door policy to every private sector community, summoned a meeting where they registered their disappointment and asked them to put out a ‘position paper’ for him to present to his Boss, President Julius Maada Bio.
Giving his findings on the new finance act 2023 and its impact on the economy, Mr. Conteh disclosed that there is a minimum alternative tax of 3% which is charged at against turnover of all businesses. He said the effect of this 3% tax is that even companies running at loss should pay tax
He said the new finance act places a huge tax of 15% on agricultural plant and machineries.
The importers’ secretary said government of Sierra Leone is spending over USD$250 million to import the country’s staple food, rice.
He lamented on the 15% tagged on renewable energy of which he said that “electricity is a right and not a privilege for consumers,” and placing 15% on it makes it a heavy burden on the sector.
He said the COVID-19 pandemic and the Ukraine-Russia war battered the tourism and hospitality sector and these institutions are just recovering and therefore he made suggestion that they should be provided with incentives rather than levying a 2% tax on the sector, with expensive and exorbitant electricity and water supply.
He said there is a 200% flat rate of tax on vehicles, trucks and tricycle (kekehs), adding that GST on port charges for the importation of rice, cement and other essential commodities and stamp duty from 0.5% to 2%.
“All these taxes will create hardship and worsen the already difficult and challenging economic climate, cut jobs, reduce investment, wipe off all the gains in the area of the MUNAFA fund that government gave to SMEs with a single digit rate,” he predicted.
He continued the new fiscal act would erode the gains revolving funds of USD$100 million that the government introduced to the private sector to cushion the effect of the coronavirus and the importation of foods and essential commodities in the country.
“During Covid-19, prices went up but food was available and for that we commended the effort of the government and we are also happy for signing up AFCFTA and the ECOWAS liberalization scheme that will create a level playing field for Sierra Leonean businesses to trade with other countries within Africa,” the SLIA Secretary General stated.
He, however, reiterated that they are admonishing President Bio not to sign the new finance bill currently awaiting his assent but to take it again to the Ministry of Finance for it to hold consultation with the private sector as the usual practice requires.
“All that we need is the betterment of Sierra Leone,” he concluded.
To get the side of finance, Africa24 contacted the Media and Public Relations Officer of the Ministry of Finance, Ahmed Sesay to respond to statement made by the scribe for the importers’ association but Mr Sesay repeatedly refused to comment on the issue.
And he instead referred African24 journalist to speak to authorities at National Revenue Authority.