NLe 248 Million In Arrears… BAN Raises Alarm Over Industrial Sector’s Tax Evasion
By JKM
The Budget Advocacy Network (BAN) has raised alarm over Sierra Leone’s industrial sector, revealing that companies in the sector failed to pay an estimated NLe 248 million in taxes in 2024. The figure, according to BAN’s latest report, underscores systemic weaknesses in tax compliance and government oversight.
Presenting the findings, Abu Bakarr Kamara, BAN’s National Coordinator, described the arrears as a “fiscal red flag,” pointing out that 73% of total tax arrears in 2024 came from companies already benefiting from tax exemptions.
“These companies are not just exempt from certain obligations—they are also defaulting on the taxes they are still legally bound to pay,” Kamara stressed.
The report, titled “Tax Exemptions in Sierra Leone’s Industry Sector: Who Wins, Who Loses”, shows that while the industrial sector contributes only 12% of domestic revenue, it accounts for 60% of revenue forgone through exemptions. The mining subsector, which dominates the sector, was flagged as the biggest beneficiary of these waivers.
BAN further warned against what it termed “eating twice”—a practice where companies enjoy exemptions yet fail to honor their remaining tax obligations. This has left compliance rates troublingly low: Corporate Income Tax at 55.4% and Goods and Services Tax at 60.1%.
The consequences are far-reaching. BAN noted that the NLe 248 million in unpaid taxes exceeds the combined budgets for school fee subsidies, tertiary hospital services, and reproductive health programs—all critical services that directly affect citizens’ wellbeing.
To address the problem, BAN is calling on government to:
Link exemptions to measurable development outcomes.
Enforce compliance by requiring exempted entities to fully settle non-exempt taxes before accessing further benefits.
Improve transparency in the approval and monitoring of exemptions.
“This is not just about lost revenue,” Kamara concluded. “It is about fairness, accountability, and protecting the integrity of Sierra Leone’s fiscal system.”
