As part of efforts to
strengthen tax administration and enforcement in the country, the Ministry of
Finance and Economic Development is planning to introduce measures to raise
additional revenue for next year’s financial activities.
Minister of Finance and
Economic Development, Dr. Kaifala Marah said that ministries,
departments and agencies will now be required to make provision for import duty
in their budget, covering all contracts that are subject to taxation.
He noted that under the
new regulation all duty and tax waivers and exemptions, including waivers for
petroleum products, will require the prior approval of Parliament.
“Duty concession to
non-governmental organizations, the tourism sector and road construction
companies will be reviewed. The
Pay-As-You-Earn (PAYE) marginal rate has been increased from 30% to 35% to make the tax system more progressive, but
this policy will only affect those earning above two million Leones”, he said.
Dr. Marah also revealed
that the government will apply the existing commercial fuel price regime to the
retail pump price to ensure a full pass through from the international price,
exchange rate movement and other inherent cost in the formula.
He added: “This is to
minimize the loss of government revenues, while at the same time removing
distortions in the domestic market” Meanwhile, financial analysts have welcomed
the move by the minister as the nation was losing huge quantum of money because of tax waivers and exemptions.
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