Parliament enacts Finance Act 2022 with some amendment
SIERRA LEONE, Freetown: The House of Parliament on Wednesday 17th November 2021 after series of amendment and changes unanimously passed into law the Finance Act 2022 to enable the country access funds for the fiscal year 2022.
The Bill is seeking to provide for the amendment of laws relating to the imposition and alteration of taxes, duties, rates, fees and other related financial matters incidental thereto.
- Presenting the Bill, Minister of Finance, Dennis K. Vandy said the Bill would support sound and prudent fiscal management of the economy and it would also address tax exemption for electoral materials, arms and ammunition, presidential medals and health related equipment.
He assured the Bill will also amend various Acts that will enable government effectively manage the country’s economy as compared to the previous years that was covered with COVID-19 pandemic.
Contributing to the debate, the chairman Finance Committee, Honourable Francis Amara Kaisamba, maintained the Bill is presented for consideration before the budget that is expected to be presented to the House for possible debate today Friday 19th November 2021, disclosing it’s the business of the Ministry of Finance to handle issue of budget for the normal running of the state
Hon Paramount Chief Bai Kurr Sanka Kanagbaro III said they had successive engagement on the Finance Bill at the Legislative Stage, expressed worries whether the Disaster Management Agency was informed about the proposed account to be opened and managed by the Ministry of Finance for any disaster.
On the issue of proposed debt collector to be hired by the government, PC Bai Kurr said, he does not want the government to be a debt collector neither introducing a third party to collect debt as the government has the ability to seize property, detain and even prosecute people that fail to pay. This according to him seems there will be more corruption to the already existing ones.
Hon Lahai Marrah reminded the Finance Minister that MPs don’t have vehicles to assist them attend sittings, explaining the document is one of hope for the country and also one used to control the country’s taxation, citing the escalation of commodity prices and huge burden of suffering on the people.
According to him, the effect of the COVID-19, increase in freight cost and the taxation at the Queen Elizabeth II Quay are more burden that have resulted to the increase on commodities prices, disclosing the people are expecting a Finance Act that will address the issue of taxation rather than making things more difficult.
On the issue of rice and fuel, he said the Finance Act should find way of creating or factoring these commodities by way of reducing their prices, disclosing the subsides government used to pay are no longer visible, citing Section 105 of the 1991 Constitution that contains the powers of Parliament which he maintained should not be taken away from them.
Hon Joseph Williams-Lamin said instituting a third party to collect debt on behalf of government is a laudable venture as everyone is interconnected which makes it very difficult to collect debt. He said he does not believe the people are very poor citing the manner used to approach customers in Moyamba which clearly shows people have ideas to make money.
According to Hon Abdul Kargbo, recently Parliament questioned the Minister of Trade on the increase in prices on commodities, stating Parliament has a responsibility to cushion the issue of price increase through the Finance Act by creating friendly business environment through tax reductions and exemptions on certain essential commodities.
He accepted the facts that prices the world over are high which could not be unlinked to the increase in freight cost especially in Sierra Leone which in turn leads to an increase in commodities prices. He requested that the Customs unit at the Queen Elizabeth II Quay together with ITS to reduce their cost prices on taxes freight.
He further pointed out the attempt by the Finance Act 2022 to tamper with some sections in the Public Procurement Act which the current 2022 Finance Act has also done, disclosing such action should be done in collaboration with the relevant MDAs that own the various parent acts.
Hon. Abdul Karim Kamara feared that frequently amending laws could lead to making bad laws, adding the said Bill has taken some of the functions of the National Public Procurement Authority in the country. Accordingly he said to him that should not be tolerated by Parliament which enacted all the parent Acts.
Hon Kandeh Kolleh Yumkella, described the 2022 Finance Bill as a ‘Super Bill’ with many amendments, some of which he is very concerned about, especially in the area of procurement. He disclosed that he has read some previous Audit Reports and one of the Entities they are trying to give exemption to had contracts worth about $65m.
“I just imagine alone what $65m could do for Fourah Bay College, Connaught Hospital,” he questioned, expressing doubt on the special procedures the Finance Act is trying to create for certain Institutions. He called on Parliament to amend the sections that deal with procurement.
The Leader of the Opposition, Hon. Chernor Bah said they need not amend parent laws without the MDAs present, describing the Bill as the most important document that was brought to Parliament for consideration, explaining some aspect of the Bill have circumvented existing laws passed by Parliament. Speaking on funding and upholding existing laws, he said the Bill should concentrate more on revenue generation and called for reduction of taxes on certain commodities for the benefit of ordinary people in the country.
Concluding, Leader of Government Business, Hon. Mathew Nyuma said that the Minister has power under the 1991 Constitution of Sierra Leone to control agencies under his watch and said that adequate consultation was done before the Bill was brought to Parliament for enactment into law. He also said that the Ministry of Finance was on track and that it was not in violation of laws that had been passed by Parliament. He said the Bill was to impose and alter taxes for the good of ordinary citizens. AMK/19/11/2021