By Ibrahim S. Bangura
Freetown, Sierra Leone – The National Revenue Authority (NRA), through its Domestic Tax Department (DTD), hosted a workshop on Monday, February 3, 2025, at The View Restaurant, Freetown City Hall. The aim was to educate and sensitize taxpayers on the key changes introduced in the Finance Act 2025 and promote compliance with the new tax laws.
The workshop provided a platform for business owners, tax consultants, and representatives from various sectors to voice their concerns and gain clarity on the updated tax policies.
Matilda Zainab Kamara, Manager for Taxpayers Registration Service and Education at the Domestic Tax Department of the NRA, explained that while the legislature is responsible for enacting changes in the Finance Act, it is the NRA’s duty to implement and educate the public on these changes. “Before we enforce the law, we must inform and educate taxpayers on what has changed in the Finance Act 2025. This year, there are no new taxes—only adjustments to incentive tax rates and penalties. These changes ensure an up-to-date tax system that promotes compliance, enhances revenue mobilization, and supports economic growth,” she noted.
Kamara encouraged taxpayers to register with the NRA, file returns, make payments, and maintain proper records. She explained that revised tax rates and compliance measures could impact operational costs for businesses, while incentives such as tax breaks for small and medium-sized enterprises (SMEs) aim to foster business growth. Individuals will also experience changes, particularly in personal income tax adjustments and penalties for non-compliance.
Some major changes in the Finance Act 2025 include:
- Payroll Tax: Adjustments in penalties for late filing and non-filing. Large Taxpayers Office (LTO) penalties have been revised to Le 25,000 for late filing and Le 50,000 for non-filing. Medium Taxpayers Office (MTO) penalties are now Le 12,500 for late filing and Le 25,000 for non-filing. Small Business taxpayers face penalties of Le 1,250 for late filing and Le 2,500 for non-filing.
- GST Filing Obligations: Taxpayers must submit returns with detailed input and output claims within 21 days after each tax period.
- Customs Tariff Adjustments: Amendments to the Harmonized System (HS) Codes to prevent tax misclassification and rate switching, along with stricter enforcement measures to improve compliance.
Shiaka Kamara, the Assistant Commissioner at the Medium Taxpayers Office, NRA, highlighted the government’s efforts to amend laws that have been affecting the population. Speaking on revised filing obligations, he said taxpayers are required to submit GST returns within 21 days after each tax period, with penalties for late filing and non-filing.
Businesswoman Fatmata Sesay expressed cautious optimism, hoping that compliance requirements would not become overly complicated for small businesses. Financial analyst James Koroma emphasized the importance of digitalizing tax services to facilitate compliance, suggesting that online filing systems be improved.
In his closing remarks, Zainab Kamara emphasized the role of compliance in national revenue mobilization, encouraging taxpayers to adopt a responsible approach to their tax obligations and spread awareness about the new regulations.
The Finance Act 2025 aims to create a more efficient and transparent tax system in Sierra Leone, with the