By: MOHAMED M. SESAY (LUCKY)
It is an unadulterated truism that without an efficacious taxation system a country would be unable to meet the demands of social responsibility to electorates. Taxation is crucial because governments collect such monies and use them to finance government projects and promptly pay salaries for civil and public servants. It is a necessity on the part of the Bio led Government to levy tax as a way of soliciting resources to fund social services. Governments across the globe impose charges on their citizens and businesses as a means of raising revenue which in return is used to meet government’s budgetary demands. Such demands include but not limited to financing government and public projects as well as making the business environment in the country conducive for economic viability. All of us are now dreaming to stay in the almighty United States of America may be for better living. But guest what; the almighty United States of America, the Great Britain among other advanced nations, achieved the status they are today because of the robust taxation mechanisms put in place.
The Courier is always and constantly mindful of the fact that governance is a crucial component in the smooth running of state affairs. I equally have no iota of doubt that bad governance would have far reaching corollaries on the entire country with a cascading effect on its economic growth.
Contrastingly, good governance ensures that the money collected through taxation is utilized in a manner that benefits citizens and non-citizens alike. This money also goes to pay public servants, police officers, nurses, and teachers, members of parliament, the postal system, and other state actors. However, with dwindling revenue generation from taxation, government will be much challenged to pay salaries on time and implement its development projects. Unlike under the reign of the previous regime, citizens have been admiring the Bio led government for its ability in promptly paying salaries to all workers. After assuming governance in 2018, the Courier has not visualized a single protester claiming that they have not received their monthly salaries. All these glad tidings in terms of prompt paying of salaries are happening due to the robust revenue generation through taxation. And the Courier must extend hands of felicitation to the current Commissioner General of the National Revenue Authority (NRA) Dr. Samuel Jibao for a commendable job. It is an undiluted saying that the National Revenue Authority (NRA) under the leadership of President Bio has gained unprecedented revenue generation since time immemorial.
Under the current Commissioner General of the National Revenue Authority, the country has seen several reforms in terms of revenue generation and administration since 2018.
Most of the reforms include the introduction of the Electronic Cash Register Machines for businesses with an output of hundred million Leones and above for the collection of goods and Services Tax (GST). A historic increment of revenue generated by NRA in 2018 stood at 36% coupled with the revenue Gross Domestic Product ratio which saw an increase of 1.5%. The welcoming reality is that all of the revenue generated through taxation has been utilized to the fullest.
Government annual budgets especially the 21% allocation to the Free Quality Education, are clear testament to vindicate the government that indeed taxes collected are fully utilized for their intended purposes.
Further justification of taxes being utilized for their intended purpose is for one to take a critical look at the emerging incomes policy of the Bio led government. There has been an astronomical increase of salaries of workers, and also raising the minimum wage and minimum pension.
By April last year, government also increased salaries for all security personnel and staff of tertiary institutions. Government increased minimum wage from Le 500,000 to Le 600,000 and minimum pension from Le 25,000 to Le 250,000. This New Direction Government has also raised salaries of health workers by over 100%, teachers by over 50% and general work force by at least 20%. This is indeed a justification that our taxes are utilized well. The pragmatic applicability of salary increment would not have been visible had it not been for the vigorous revenue generation systems put in place by NRA.
With the existing circumstances, I have no reason to doubt the analysis put forward by the Chief Minister Jacob Jusu Saffa in one of his articles. The Chief Minister postulated that Economic Growth was estimated at 5.4% in 2019 compared to 3.5% in 2018. Total revenue (including grant) GDP ratio increased from 14.8% in 2017 to 17.7% in 2019. In 2019, about 75% of the national budget was financed by the domestic revenue.
Jaccob Jusu Saffa asserted that average daily domestic revenue collected increased to about Le 20 billion and by extension monthly revenue collection for 22 working days estimated at Le 440 billion.
“With the wage bill around Le 250 billion plus Le 100 billion for debt service, means that, currently, Government has about Le 90 billion for other recurrent and capital budget financing. Although this is not enough, it has enabled us to seamlessly manage the economy”.
I must emphasize why Sierra Leoneans especially the Business Community to see the need for paying taxes. Ineffective taxation can create the nexus for political instability in any country. A poor teacher cannot swallow such anguish by teaching for over six months for instance, without salaries. The inimical effect of such will no doubt lead to a bloody protest that can decapitate the educational system.
This same goes for nurses and doctors in the circumstance doctors decide to lay down tools, fatality rate among patients.
What astounds me the most is the sad reality that business people with an output of over one hundred million Leones could shun from paying tax.
Even poor teachers with a take home salary of one million five hundred thousand Leone are paying taxes, why must the Business people consider themselves exceptional?
I am glad to inform that the Courier also pays PAYE (pay as your earn) tax to government so as many private and government workers. If we are to see a better Sierra Leone, then we need to nurse the spirit of American Citizens, British citizens etc. in paying our taxes to government. America is a hypothetical heaven on earth today because of their robust revenue generation through taxation. The Courier has the strongest conviction that Sierra Leone will become a safe paradise if we embrace the National Revenue Generation by paying our taxes.
