After some heated debate Members of Parliament (MPs) yesterday accommodated the comments made by President Ernest Koroma on the Finance Act 2017 in accordance with Standing Order 58 (6) and section 106(7&8) of the 1991 Constitution of Sierra Leone.
It could be recalled that Members of Parliament unanimously voted in support of the Finance Act 2017 to become law in order to generate funds for the government through taxations.
Presenting the President’s Comment and recommendations before the House of Parliament, the acting Chairman of the Legislative Committee, Hon Daniel Koroma, explained that the actions of the President is in accordance with the law, citing section 106 of the 1991 Constitution.
According to him, the President can choose to sign or decide not to sign the document and then return to Parliament for amendment according to the laws of the land.
A letter signed by the Secretary to the President, E.B Osho Coker, dated 18th May 2017, addressed to the Clerk of Parliament, contains President Koroma’s recommendations to Parliament on various areas.
On the area of alcoholic beverages and spirit, President Koroma upheld the proposal made by the Ministry of Finance on specific excise tax duty of $4 USD per litre for alcohol content less than 10 percent and $6 USD per litre of alcohol above 10 percent as opposed to the parliament approved ad valorem tax of 40% for below 10 percent and 45% for above 10 percent of alcohol by MP’s.
The Ministry of Finance proposed an import duty rate on juice of 30% while Parliament approved 20%. During the debate about a month, but in his recommendations, President Koroma recommends that Parliament work with the Ministry’s proposal of 30 percent.
Another recommendation to Parliament by President Koroma is on specific excise duty of 30% on cigarette and tobacco product as proposed by the Ministry which Parliament on the Bill sent to the President approved on zero percent rate on the basis to avoid or discourage smuggling and generate more revenue on taxation.
The Ministry also proposed full implementation of ECOWAS Common External Tariff (CET) rates, which will replace schedule 1 of the Customs Tariff rates that that are currently in use, but Parliament left them out and President Koroma recocmmended for them to be included.
The Finance Ministry on the area of wheat flour and the National Minerals Agency in various areas agreed upon the approved proposals by Members of Parliament.
Expressing his position on the issue, Hon Style Jengo, maintained that Parliament should stand on its position as stipulated in the Bill sent to the President in the interest of the country’s development.
He stated that the said Act was excessively dealt with in the Well of Parliament and recommendations made in the interest of generating revenue for the country and any alteration on those recommendations will be in complete contravention on the intent of the 2017 Finance Act, which aims at generating more revenue for the country.
According to him the National Revenue Authority experts on taxation did educate them on the importance of removing those excise duties on imported alcohol as evident in the revenue loos from August 2016 to date with the introduction of the 2016 Finance Act.
He maintained that they as MP’s have the responsibility to see how best they can help government generate revenue particularly at this crucial time when the country’s economy is struggling.
These point were supported by Hon Bashiru Sidikie who disclosed that if Parliament accept the recommendations the country will not be in position to generate the necessary funds to conduct the elections, maintaining that Parliament have the right to accept or reject the recommendations based on law, so he is calling on all to reject them and stand by their previous position.
The Deputy Speaker, Hon Chernor M Bah, agreed with some of their points but maintained that it is not usual for Parliament to reject recommendations from the President and they should not start it now.
He explained that they should work with the proposals of the experts that is the Finance Ministry as a way of generating revenue for the country but that the Minister should present a comprehensive report on the status of the economy to Parliament in three months time so that Parliament can make final decision on the issue.
Other Members of Parliament agreed with the points and suggestions made by the deputy Speaker including the Minority Leader, Hon Bernadette Lahai and the Acting Majority Leader, Hon Hassan Sheriff for them to accommodate the President’s Recommendations and for the Minister to present a report to them in three months time from now.
After Members of Parliament had voted in favor to accommodate the President’s Recommendations, the Minister of Finance, Momodu Kargbo, stood up and started dancing with a broad smile on his face
By Alhaji M Kamara
Friday May 26, 2017.