Over Approval of Taxes On Essential Goods…
MPs May Betray Sierra Leoneans
By John Kelly Marah
As Members of Parliament they are expected to seek the interest of the people, because they were elected by the people to represent them in Parliament. Therefore, their approval of the Finance Act of 2024 (Budget) that imposed taxes of rice, cement, iron rods etc, which are very important and necessary goods bought by people, appears to be a complete neglect band disregard for the impact such taxes will bring on the daily lives of people.
It should be noted that at a time of huge economic strain on the people, any kind of tax levied on any commodity by the government, will have a negative effect on the livelihood of people, and their obvious reaction will be disappointment in their elected representatives in Parliament, who are expected to fight for the well-being of their people.
It goes without saying and is simple economics that when tax is imposed on any imported commodity, the importer transfers the said tax in the form of the cost price of the commodity that is sold to the customer, who is the end user (the people). Therefore, the introduction of 5% tax on imported rice, which is the staple food of Sierra Leoneans, will inevitably lead to a substantial increase in the price of rice in the market, which will definitely affect the lives of citizens. Currently, the cost of a bag of rice (25kg) is so high that few families can afford to get one, which may not even last for the month. This, in effect, means that a good number of Sierra Leoneans are currently unable to buy a small bag of rice for their families. Please note that this is the current situation, while the tax is yet to be introduced. So in the event of introducing this tax on rice, the plight of the already poverty stricken population will be precarious, creating heavier burden on the people.
With regards to the tax on iron rods and cement, which are building materials. The cost therefore, of renting a house will go up exponentially, creating another burden for the renting population, in an already virtually tough housing situation in the country. At present, even government civil servants do not have government quarters to live in, with a majority of them living in rented houses. Unfortunately, the salaries that they are paid could barely sustain them for two weeks, not to talk of any new tax arrangement.
Should the current Budget being debated in Parliament be given a green light, it should be noted that the effect on the people will be grave, and will best be interpreted as robbing John to feed Peter, especially when taking into account the excuse being given that the tax will enhance rice production and result in the feed Salone project of the government. Until that initiative is achieved, what will the people be living on? This is going to turn many families into extreme poverty and exacerbate the already biting hardship in the country.
