By Mohamed Konneh
The Budget Advocacy Network (BAN) with support from Christian Aid on Wednesday 5th November 2025 engaged the Finance Committee of Parliament on Tax exemption report. The report titled ‘’Eating Twice’’ is a research work done by the Budget Advocacy Network geared towards understanding revenue forgone from exempt entities and their compliance to taxes not exempted in the industry sector of Sierra Leone.
Presenting the research result to members of parliament the Coordinator of BAN, Abu Bakarr Kamara presented some adverse realities of what is happening in the sector.
Kamara noted that in 2023 alone a total of NLe 3.5 billion revenue was lost due to exemptions. The industry sector contribution to domestic’s revenue is 12.81% while the revenue lost is 35%. This show lack of transparency and create opportunities for misuse,’’ he said.
The report shows that discretion in granting exemption is a big challenge and that there is poor linkage resulting in few exemptions tied to measureable benefits such as jobs, export or technology.
The report also talks about weak oversight resulting into multiple institutions issue exemptions with little coordination or monitoring.
‘’73% of total areas (NLe248M in 2024) owed by entities and this more the amount needed budget to school fees subsidies, tertiary hospitals and ambulance services,’’ Kamara said.
The BAN Coordinator noted that filling compliance on corporate income tax was 55.4% in 2024 while Good and Service tax amount to 61.1% in 2024.
Kamara noted that exempt companies benefit twice as most companies not only benefit from concessions but also record weak tax compliance and high areas hence ‘eating twice’ while the state loses twice.
The report put forward several recommendations including public disclosure-that all exemptions granted with names of beneficiaries online and fiscal costs involved, to enhance accountability and citizens oversight. Produced and publish bi-annual reports on exemptions and that beneficiaries should be required to report on the use and impact of the incentives before processing new one. This accordingly, will reduce the risk of misuse and will ensure exemptions are tied to genuine impactful investment.
The report went further to state that the current regime of broad exemptions combined with poor compliance drains Sierra Leone’s fiscal space undermining the financing of health, education, and infrastructure. To also stop losing twice, exemptions must be conditional, transparent and performance based. Strict enforcement, coupled with public accountability will ensure that incentive drive investment without eroding the country’s revenue.
Christian aid Executive Director, Mattia Koi Dimoh speaking earlier said his organization is pleased to be part of the engagement and to witness the session.
He said today’s session is insightful taking into cognisance a research done by BAN and supported by Christian aid.
‘This report is in two fold a research report by BAN and another by the parliamentary Budget office. This is to ensure fiscal policy is not only prudence but also contributing to national development,’’ he said.
The Christian Aid Executive Director noted that the work is not just an academic exercise but one that will help shape policy geared towards development.
Koi Dimoh noted that every concession granted by parliament should be done from an informed perspective.
The Deputy Chairman, Finance Committee in Parliament Hon. Mustapha Sellu in his submission said they are delighted to be part of the engagement and report of such nature is an eye opener for members of parliament.
‘’This process give an insight to members of parliament on the tax exemption that is given. We want to see what is in the report and what we will take forward.
The report presented by the Budget Advocacy Network (BAN) was applauds by members of parliament who game meaningful contributions and actions needed to be taken.
