By: Mohamed Sahr
The National Revenue Authority (NRA), in partnership with the Budget Advocacy Network (BAN) and the Ministry of Finance, has launched a comprehensive report titled “Tax Exemptions in Sierra Leone’s Industrial Sector: Who Wins, Who Loses?” The launch event, held at the Ministry of Finance’s Main Conference Hall on Wednesday 26th March 2025, brought together key stakeholders from international organizations and civil society groups.
NRA Commissioner-General Mrs. Jeneba J. Bangura emphasized the dual role of tax exemptions in attracting foreign direct investment and stimulating industrial growth, while also raising concerns about their escalating fiscal impact. Mrs. Bangura noted that between 2018 and 2023, tax exemptions in the industrial sector increased dramatically from NLe 177 million to NLe 3.5 billion an almost 20-fold rise. “During the same period, the sector’s GDP contribution grew fourfold, from NLe 8.9 billion to NLe 35.6 billion, with the mining sector being the primary beneficiary,” she said.
The Commissioner-General highlighted that the revenue forgone due to these exemptions now accounts for 60% of domestic revenue, raising critical questions about their efficiency and sustainability. She identified several challenges within the current tax incentive framework, including a lack of transparency and policy inefficiencies.
Mrs. Bangura reaffirmed the NRA’s commitment to addressing these issues by working closely with the Ministry of Finance and other stakeholders to establish a more targeted and accountable tax incentive regime. Key recommendations from the report include focusing incentives on high-growth sectors that promote job creation and technology transfer, enhancing transparency through public disclosure of beneficiaries, and implementing performance-based incentives.
Mrs. Bangura reiterated the NRA’s dedication to refining tax policies that support sustainable development while minimizing revenue losses and maximizing economic benefits. She also commended BAN for their insightful report and called for collective efforts to implement the proposed recommendations, striving for a fair and efficient tax system capable of financing Sierra Leone’s development aspiration.