2009 Finance Act Empowers NRA

The Finance Act for the year 2009 being an Act for the imposition and alteration of taxation and other related matters and which came into being on 4^th September after receiving President Ernest Bai Koroma’s accent has empowered the National Revenue Authority in its responsibilities.

The NRA was created by an Act of Parliament in 2002 to serve as a central body for the administration and collection of national revenue, to provide for the administration and enforcement of specified laws among other functions. The enactments in relations to which the  Authority is to take collection of non-tax revenue include but not limited to, the National Commission for Privatization Act 2002,State Lands Act  1960, Building Fess Act 1973, Fisheries Management and Development Act 1994, General Registration Act Cap.255, Non-Citizens(Registration, Immigration and Explosion) Act 1965.

The Finance Act 2009 contains several changes which are meant to improve on the revenue mobilization in line with international and national best practice procedures. These amendments include: The rate on excise duties on alcoholic beverages, the definition on the legality of non-resident persons in Sierra Leone, NRA assuming direct oversight and responsibility for the collection of non tax revenue, revenue stamps replacing postage stamps, increase in threshold of PAYE and the implications of the amendments. Such amendments are enshrined in several sections in the Finance Act of 2009.

Section 2 deals with the amendments of the Excise Act, 1982 amended in the first schedule; Tariff item No. 22.09 for alcoholic beverages: sub section (a) alcoholic content of 10%, or less, rate of excise duty is 30% (b) alcoholic content greater than 10% rate of excise duty is 35%. Section 3 deals with the Income Tax Act, No. 8 of 2000. Sub section (2) deals with the establishment of a non resident person in Sierra Leone further clarified by subsection (3) which states: for the purpose of subsection (2) the permanent establishment of a non-resident person in Sierra Leone is, unless otherwise stated, the establishment through which it carries out business activities in full or in part, including activities carried out through an agent for a period of no less than 182 days during the next year.

With regards the Non Tax Revenue, the 2009 Finance Act states in section 4 that ‘The National Revenue Authority Act, 2002 is amended in section 12 (a) by the insertion immediately after paragraph (a) of subsection (2) thereof of the following:- (a) to take over- (i) the collection of the revenues or  other moneys, not derived from taxation, raised or received for the purpose of, or on behalf of, the Government, hereinafter referred to as “non-tax revenue”, and required by subsection (1) of section 111 of the Constitution to be paid into the Consolidated Fund, including but not limited to fees, fines and royalties payable under the enactments set out in the second schedule

Regarding customs clearance procedures, section 6 of the Act stipulates the procedures involved in the automated customs clearance process.  Also, the Commissioner-General of the National Revenue Authority shall now publish in the Gazette or otherwise details of defaulters and their debts require security for the payment of any non-tax revenue and sue for and recover penalties and interest arising thereon.    

The NRA has in the recent past performed well to the admiration of the Sierra Leoneans population. It has collected over three hundred billions Leone, exceeding its target for the first quarter.

During the State Opening of Parliament, the President Dr Ernest Bai Koroma spoke that ‘the National Revenue Authority is vital to this mobilization effort. Total Revenue collected by the Authority in the first half of 2009 exceeded Le.300 billion an increase of over Le.27 billion compared to the same period last year… ‘

He also spoke that ‘there is no room for complacency. The Goods and Services Tax Unit has been strengthened, and the GST will be implemented in January 2010. The project to transform the Customs and Excise department in to a modern department is in its final stage. Once completed, it is expected to minimize human influence and discretion.

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