The National Revenue Authority (NRA) has projected Le 6.509 trillion as its target for revenue mobilization for 2021 Fiscal Year with an increase of 1.108 Trillion when compared to 5.399 in 2020 which is in accordance with the government’s Macro Fiscal model.
NRA made this disclosure on Tuesday at the ongoing Fiscal Year Budget hearing for 2021 at the Ministry of Finance conference room in Freetown.
Director of Research and Planning for NRA, Dr. Philip Kargbo said that the indicative budget estimates are based on activities in the 2021 strategic plan which is conservative but realistic. He added that performance and activities of NRA would be adjusted to reflect the corporate objective of the Authority.
He said to achieve the target, among several objectives NRA is expanding its capacity through block registration; data analysis of Freetown City Council (FCC) property data and implementation of tourism registration strategy.
“To achieve our target we need to close leakages and reduce tax evasion and avoidance through tax payer’s legislation and audit capacity; and review of fiscal regimes in existing agreements and legislating a duty and tax exemption policy to create a consistent policy frame work for fairness and ensuring minimal revenue loss,” Kargbo said.
He added that the Integrated Tax Administration System (ITAS) targeted to maturate and integrate all domestic tax transaction that would enable tax payers to find their returns, pay and register online which would enhance compliance by rebuilding the level of interactions between NRA staff and tax payers.
Kargbo referred to the Electronic Cash Register (ECR) system as one which would also be implemented in 2021 to enhance effective revenue mobilization, noting that the pilot aspect is only related to the hospitality sector and field taxpayers in the supermarkets.
He mentioned that Building Capacity in Data Analytics involves setting up a centralized data analysis project by establishing a data warehouse and training NRA staff to extract, transform and store data in a centralized system.
The Director of Finance for NRA, Ibrahim Komoh, said that in line with the 2021 budget proposal NRA highlighted non-revenue activities for implementation which are the completion of WAMA Building, refurbishment and renting of land border post and construction of revenue house which would in a long term reduce expenditure of rental expenses.
He admonished the Ministry of Finance to consider NRA’s constraints on the proportionate distribution of the Authority’s 3% commission usually paid to them by the ministry.
By George M.O. Williams
8/09/2020. ISSUE NO: 7926