Recognising the need for increased revenue to address the prevailing extreme poverty in the country, the Government of Sierra Leone (GoSL) has rightly decided to transform the National Revenue Authority (NRA) into a modern revenue administration capable of mobilising the much needed revenue. DFID has agreed to support GoSL's NRA Modernisation Programme.
Crown Agents has been contracted by DFID to provide support to the NRA in broadening the tax base and improving revenue administration primarily through the introduction of VAT and strengthening of the NRA as a whole.
Particular focus of the project has been on building the capacity within the NRA to maintain technical development through the transfer of knowledge and a sustainable training capacity. The overall goal of the project is to increase the level of revenues for the government to assist in reducing poverty and aid dependency in the medium to long-term. Crown Agents, in collaboration with the Revenue Agencies Governing Board of Ghana (RAGB), has been providing crucial support to the NRA in crafting strategies for modernisation and implementing them.
The key objectives of the programme are to -
- Provide support to implementation of GST
- Strengthen Income Tax administration
- Provide support in computerisation of business processes
- Increase NRA's ability to achieve its short-term revenue targets
- Strengthen HR function
- Implement Short Term Revenue Improvement Programme (STRIP)
- Provide oversight of procurement under the project
Building on the tax reform work that Crown Agents had undertaken with the Sierra Leone NRA, 2008 saw the implementation of Phase II of the Short-Term Revenue Improvement Programme (STRIP). The STRIP programme has the objective of achieving some quick gains in revenue collection. The work has concentrated on the transfer of skills and changes in processes and attitudes, by enabling expatriate consultants to work in the field, alongside NRA staff.
Technical assistance was provided in four business streams:
- Direct Tax - income tax procedures and income tax auditing
- Customs - import freight, air passenger control, maritime anti-smuggling, post-clearance audit and risk management
- Indirect Tax - excise/oils audit, sales tax audit, petroleum field audit
- Compliance and Taxpayer Services - enforcement and debt management, publicity
Crown Agents is also continuously assisting the NRA with their on-going preparation for the implementation of a Goods and Services Tax (GST) in 2009.