By: Mohamed J. Bangura
Sierra Leone generated NLe12.65 billion in domestic revenue during the first eight months of the year, representing approximately 57 per cent of the government’s annual domestic revenue target of NLe22.16 billion.
Income tax, customs and excise duties, and Goods and Services Tax (GST) remained the major sources of domestic revenue, accounting for the bulk of government collections.
In August alone, the government collected NLe1.404 billion in domestic revenue from various tax and non-tax sources, with income tax contributing the largest share.
Income tax generated NLe550.5 million during the month, accounting for approximately 39 per cent of total domestic revenue. Customs and excise duties contributed NLe324 million, while GST collections amounted to NLe282 million.
Together, the three major revenue sources accounted for approximately 82 per cent of domestic revenue collected in August.
Over the eight-month period, income tax collections reached NLe5.21 billion, representing 63 per cent of the annual target of NLe8.25 billion.
GST collections stood at NLe2.26 billion, equivalent to 59 per cent of the annual target, while customs and excise duties generated NLe2.43 billion, representing 44 per cent of the NLe5.48 billion target.
Mineral revenue also contributed to domestic resource mobilization, generating NLe90.6 million in August and bringing cumulative collections for the first eight months to NLe918 million. This represents approximately 71 per cent of the annual target of NLe1.29 billion.
Other departmental receipts and revenue collected through the Treasury Single Account also recorded progress, reaching 71 per cent and 65 per cent of their respective annual targets.
However, some revenue categories recorded relatively low collections during the period. Road user charges generated NLe4.9 million in August, bringing the cumulative total to NLe85.1 million, or approximately 13 per cent of the annual target.
Fisheries revenue was also identified as a weaker-performing category, highlighting the need for improved collection efforts in some areas.
Meanwhile, the government received NLe368.95 million in grants during the period, against an annual budget target of NLe3.77 billion. This represents approximately 10 per cent of the annual target.
With four months remaining after August, the government faces the task of increasing revenue collections to meet its annual fiscal targets.
Strengthening tax compliance, improving revenue administration and addressing weaknesses in underperforming categories could help boost domestic resource mobilization and reduce pressure on government financing.
The strong contribution of income tax, customs and excise duties, and GST also highlights the importance of maintaining an effective tax system while exploring opportunities to broaden the domestic revenue base.
Overall, the NLe12.65 billion collected by the end of August represents substantial progress towards the government’s annual domestic revenue target of NLe22.16 billion, although further efforts will be required to close the remaining gap.