The Commissioner General of the National Revenue Authority (NRA) has appealed to businessmen to open their shops following the closure of shops last Thursday and Friday. The appeal came after series of meetings with the business community based in the capital Freetown.
Dr. Samuel Jibao made the appeal during a press briefing held on Friday, February 4, 2022 at the NRA Office, Wellington Street in Freetown.
Dr. Jibao recalled in 2009 when the GST was introduced by an Act of Parliament bringing series of tax regulations on one unit.
He said the threshold at the time was Le350 million and this has further been reviewed bringing the threshold to Le 100 million to bring more businesses into the tax regime.
He said that this was done because government continues to reduce taxes and bringing onboard more businesses to enable government collect more for the development of the country.
On the Electronic Cash Register (ECR) machine which is at the center of strike action by businesses, Dr. Jibao noted that the machine is not additional tax, but for businesses to pay their correct tax.
“This ECR Machine will also enable businesses to know about their day’s sales and take stock of profit margin and how the business is doing. This is simple, and only businesses within the one hundred Million Leones margin are those where the machines will be installed,” he said”.
He said people who took microcredit and smaller shops have no business with the ECR.
“Business worth One Hundred Million and above are the ones where the ECR machines will be deployed. Businesses have nothing to fair as this is not new taxation neither a burden on businesses. Even with the GST it is the consumer that pays and not the business. All they need to do is to subtrack and pay to government,” Dr. Jibao noted”.
The Commissioner General assured that ongoing engagement with businesses will continue, noting that the revenue generating entity will continue its mass sensitization on the ECR.
The Freetown business district came to a standstill last Thursday with no trading activities after shops in the main business district closed their doors on customers because the National Revenue Authority started the installation of the Electronic Cash Register (ECR) Machines.
The peaceful strike action was called as a show of rejection for the policy government.
At Abacha Street, shop owner Umaru Jalloh said they closed their shops because NRA taxation is too much while noting that they do not need the machines as a result of the volume of their business.
“My business is not up to one hundred million and we’ve been told that the machine will soon been deployed in my shop. This machine is meant for big businesses,” he said’.
The strike followed months of sensitization and training by the country’s revenue authority with business houses for them to understand the new machines that will help not only in revenue collection but the businesses as well.
The Government of Sierra Leone in 2009 introduced the Goods and Services Tax. A year ago, the Government started to pilot the Electronic Cash Register machines to collect Goods and Services Tax. The machines will help to reduce leakages and enhance better accounting for the GS taxes collected by traders from consumers.
Even though not every shop meets the threshold for the machine to be deployed yet these shops were closed down to the public.
By Alimatu Jalloh