New Department for International Development (DFID) White Paper on International Development - Eliminating World Poverty: Building our Common Future 2009
DFID White Paper leading the way to an eventual exit from aid dependence
As strong advocates for the effective use of accountable financing to reduce poverty by developing the enabling environment for business led economic growth we welcome the DFID White Paper's promotion of Economic Recovery and Greener Growth. Crown Agents believes that without trade, economies cannot grow. Sustainable development is dependent on economic growth which is driven by trade. No government can build a future for its people without supporting business, trade and investment. This requires that the right polices and practices are established to build the foundations for growth generation. Aid must be complemented by private sector development, entrepreneurship and trade. Donors such as DFID can help partner governments create a more efficient environment for enterprise to flourish and generate the revenues needed to enhance public services and we therefore welcome the recognition in the DFID White Paper that effective tax systems are central to effective states, and that raised in ways that encourage economic growth and promote political accountability, taxes provide the resources to fund public services, leading to an eventual exit from aid dependence.
Crown Agents working to help eliminate poverty
Crown Agents works with revenue agencies around the world to help them realise their full potential and thereby contribute to their countries economic growth and development. We take pride in our record of working closely with client institutions to maximise human, economic and social potential. We do this by working collaboratively to transfer the relevant skills and ideas, consulting widely with the stakeholders at all stages of the process.
Providing assistance to the Sierra Leone National Revenue Authority
Most recently, in July 2009, we have been awarded an important and wide-ranging contract to provide technical assistance to the Sierra Leone National Revenue Authority (NRA) under DFID funding. This new contract consolidates our relationship with both NRA and with the Government of Sierra Leone. We will be working with both the NRA and the Ministry of Finance and Economic Development to ensure that the newly implemented Goods and Services Tax (GST) is viable and robust and that NRA has in place effective compliance management procedures. We believe the GST is the bedrock of the country's fiscal recovery plan. Despite the global recession, working in partnership with NRA we expect to reverse the decline in total tax yield expressed as a percentage of GDP. The downward trend of this key fiscal indicator (in 2006 it fell below 12%) has caused alarm within the donor community and particularly within the IMF. Working closely with all the key stakeholder institutions, we will consolidate and further embed the GST, streamline and make more effective customs operations, and substantially increase the yield deriving from the profit tax that is levied on both corporate entities and individuals.