MoFED commence two days validation retreat on draft investment, incentives regulations, tax incentives, and guidelines
The Revenue and Tax Policy Division in collaboration with the Public Financial Management Reform Unit [PFMRU} in the Ministry of Finance and Economic Development [MoFED} has on Friday 1st November 2013 started a two days Retreat to validate the Draft Investment Incentives Guidelines and Duty Waivers at the Leisure Lodge Aberdeen.
Giving an overview of the two- Days validation Retreat Senior Assistant Secretary at the Revenue and Tax Policy Division, at the Ministry of Finance and Economic Development Samuel Momoh, stated that from 23 -26th August 2012, the Revenue and Tax Policy Division of MoFED organized a three days Residential workshop on tax incentive regulation. He noted that the purpose of that workshop was to develop a tax incentive regulation in order to attract investment, minimize abuse leading to revenue loss and provide transparency and accountability in the process. He added that the workshop at that point in time aimed at putting in place a general overriding policy document to regulate tax incentives, binding on all beneficiaries. He said the regulation contains principles and policies that should guide the process of accessing tax incentive privileges. He pointed out that the draft regulation was extensively discussed; comments and suggestions made were largely incorporated into the document, noting that out of this draft regulation and the investment provisions in the 2010 & 2011 Finance Acts, detailed guidelines to help investors access the incentives were developed by the participants. He explained that the guidelines outlined Sectoral beneficiarioes of tax incentives and the relevant laws under which the incentives are provided. He recalled that from 31st August to 1st September 2012, the Revenue and Tax Policy Division {RTPD} of MoFED organized another residential workshop on duty waivers with the purpose to critically and holistically examine the underlying policy supporting the granting of duty waivers and adequately sensitize MDAs on such documents. He highlighted that over the years, the prescribed requirements for tax concessions are either not strictly followed or effectively monitored, reasonable to believe that duty waivers could be subject to misuse, it was also envisaged that most MDAs were not fully aware of. Mr Samuel Momoh Assistant Secretary said participants thought it fit to develop a detailed procedure on the application of duty free concession. He said it was done taking into consideration all relevant laws & conventions to which Sierra Leone is a signatory, the document was to be validated printed as a handbook and distributed to all stakeholders, MDAs dealing with duty waivers issues. He outlined that the following documents will be validated; Investment incentives Regulations; guidelines on tax incentives waiver application & administration.
He noted that the objectives of the Validation exercise is to critically examine the draft Guidelines & duty waiver Application procedure, ensuring that they are consistent with those submitted by the participating MDAs prior to the preparation of the handbook as well as to finalize the investment incentive Regulations for submission to the law officers Department. He concluded that at the end of the day it is expected that the handbooks will be distributed to various stakeholders institutions, including it popularization to the general public, Duty waiver process is streamlined, abuse of duty waiver minimized, investors more enlightened on the procedure and accessibility criteria of tax incentives, data base to support analytical work developed.
An economist in the Revenue and Tax Policy Division in the Ministry of Finance and Economic Development {MoFED} Mohamed Salisu, in his remarks spoke passionately about the attitude of some MDAS in honoring the invitation of the validation workshop noting that some MDAs failed to attend the validation exercise and that after the books are out and implementation commence, the MDAs will complain of not being aware about the whole process when in actual fact they were called to be part of the process and failed to do so. He recalled provisions on agricultural input that were left out in the Finance Acts are now being included in the current Finance Bill in progress. He made it clear that they will complete the process at the end of the two-day; and the books are prepare and presented to the public, the MDAs that are absent should not complain. He said the investment incentive should apply to agriculture, trade, tourism, and a host of others while stating that it’s rather unfortunate only few numbers of invited MDAs attended the program.
By Hawanatu Bockari, SLENA/MoFED
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