Novemeber 19, 2021
BY MOHAMED M. SESAY
The Fourth Session of the Fifth Parliament of the Second Republic of Sierra Leone has on the 17th November 2021, unanimously passed into Law the Finance Act of 2022.The 2022 Finance Act seeks to provide for the amendment of laws relating to the imposition and alteration of taxes, duties, rates, fees and other related financial matters.
Addressing Members of Parliament, the Minister of Finance Dr. Denis Vandy assured that the Finance Act is to support and strengthen the efficiency and management of Public Finances. He furthered that Act contains the tax and other policy measures on reforms geared towards reducing leakages, enhancing compliance and augmenting domestic revenue mobilization for financing development and creating transparency and accountability in economic management.
Dr. Vandy said the Finance Act 2022 specifically spelt out amendments that seek to provide for the removal of discretionary wavers, tax exception on imports particularly on election materials on behalf of the National Electoral Commission, security materials including Arms and Ammunition, public order and communications equipment among others.
The Finance Minister also disclosed that the 2022 Finance Act 2022 also provides for the renaming of the Appellate Board Commissioners to the revenue Appellate Commissioners in order to reflect the scope and requirement of the Board. He added that the Act will provide for the monetary agencies will now seek confirmation with regards the availability of funds before undertaking any procurement work and services.
Dr. Denis Vandy also continued that the just enacted Act reinforces the implementation of the audit recommendations including responding to audit queries by vote controllers and other responsible civil servants. He added that the Act also provides for the establishment of a special Emergency account for disaster for which upon approval by the president, funds will now be utilized with some exception of the National Public Procurement Authority.
“Mr. Speaker, Honorable Members, the Finance Act 2022 being an act to provide for the imposition, alteration of taxes to give effect to the financial proposal to government and to provide for other related matters for the finance year 2020, set out some amendment in the act. Mr. Speaker Honorable Members, I move that the Bill entitled the Finance Act 2022 be enacted”, said Finance Minister.
Chairman of Finance Committee in Parliament, Hon. Francis Amara Kaisamba said the primary objective of the Bill was to provide for imposition and alteration of taxes in support of the government’s fiscal policy for the year 2022. He added that several Acts would be amended to address some of the economic issues in the country and to ensure sound and prudent management of the economy.
Leader of the National Ground Coalition (NGC) Hon. Dr. Kandeh Yumkella, said there were many good ideas in the Bill, but have a phobia of several amendments of laws that were already passed by Parliament.
Leader of the Main Opposition All People’s Party (APC) Hon. Chernor Bah, described the Bill as the most important document that was brought to Parliament for consideration. He said some aspect of the Bill have circumvented existing laws passed by Parliament. Speaking on funding and upholding existing laws, he said the Bill should concentrate more on revenue generation and called for reduction of taxes on certain commodities for the benefit of ordinary people in the country.
Concluding the Debate, Leader of Government Business, Hon. Mathew Nyuma said that the Minister has power under the 1991 Constitution of Sierra Leone to control agencies under his watch and said that adequate consultation was done before the Bill was brought to Parliament for enactment into law. He also said that the Ministry of Finance was on track and that it was not in violation of laws that had been passed by Parliament. Hon. Mathew Nyuma also said the Bill was to impose and alter taxes for the good of ordinary citizens when he was reacting to concerns raised by MPs during the course of the debate.