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National Inland Revenue Commission

The National Revenue Authority
7 Bathurst Street
Freetown
Tel. 00232-22 221474
Fax: 00232-22 228561

The objectives and functions of the National Revenue Authority (NRA) are to collect and account for all duties, taxes, revenue and penalties as prescribed by existing revenue laws of Sierra Leone. In pursuit of these objects, it is the mission of NRA to design and implement effective strategies and programs to collect and account for tax revenues at minimum cost while facilitating trade, investment and the movement of people across the borders of Sierra Leone through an efficient, transparent and tax friendly service delivery.

GOAL
The Principal goal of the National Revenue Authority is to increase national revenue collection on a sustainable basis.

OBJECTIVES
The central objective of the NRA is that of designing and implementing effective strategies and programs to increase revenue collection. The specific objectives of the Authority are:

• 
  Managing a result oriented Revenue Collection Institution
• Ensuring an effective management of Human Resources
• Ensuring cost effective management of the financial resources of the Authority
• Becoming a Client Oriented Institution

The National Revenue Authority has three main revenue generating agencies, which are: The Income Tax Department, The Customs and Excise Department, and The Government Gold and Diamond Office.

The Income Tax Department:

Income Tax Department
6th Floor Electricity Building
Siaka Stevens Street
Freetown
Tel. 00232-22 222056/226471

• The commissioner of Income Tax who is one of the Senior Executive officers of the NRA and is accountable to the Commissioner General heads the Income Tax Department.
• He/She is charged with the responsibility of administration of tax legislation and the board of directors of the NRA appoints him.
• One deputy and five commissioners and other officers assist the commissioner.
• The main tax legislations administered by Income Tax Department include:
  - Foreign TRAVEL Ticket Tax Act No. of 1975
  - The entertainment Tax Act No. 7 of 1981 as amended
  - The Restaurant Food Tax Act No. 6 of 1989
  - The External Telecommunication Tax Decree 1995
  - The Income Tax Act No. 8 of 2000
• With the advent of the NRA and as proposed in the Government Budget for Financial Year 2004, the corporation tax is to be reduced from 35% to 30% and top marginal rate of Income Tax from 35% to 30% with a corresponding adjustment to all Income Tax bands.
• Income Tax Department is one of the three Revenue Agencies of the National Revenue Authority
• Income Tax Department is responsible for the Administration and collection of Income Tax. The Administration of Income Tax involves identifying taxpayers, assessing their liabilities for tax.
• In general, the Income Tax Department is responsible for “direct taxes”, that is, taxes on what people receive as income or already possessed as accumulated wealth.
• Taxes administered and collected by the department include: corporation tax, income tax on individuals, entertainment tax, foreign travel ticket tax, restaurant tax and tax on external communication.
• In addition to tax assessment and collection functions, the income Tax Department provides other services to Government and the General Public including:
• 
  Providing fiscal advice to government and initiating all fiscal legislation
• Representing government on negotiations where taxation is involved.
• Effectively enforcing and administering the income tax Act and allied legislation so as to collect the right amount of tax at the minimum cost consistent with rights of taxpayers.
• Provide relevant statistical data.

THE GOVERNMENT GOLD AND DIAMOND OFFICE (GGDO)
The Government Gold and Diamond Office
2nd Floor Bank of Sierra Leone
Freetown
Sierra Leone
Tel. 00232-22 222600
The government Gold and Diamond Office came into being in 1985 in pursuance of Government’s avowed policy to remedy the acute shortage of foreign exchange in the country.
The functions of the Government gold and Diamond Office (GGDO) as set out in Sierra Leone Gazette Vol. cxv11 No. 100 of Tuesday 17th December as follows:-

1. To buy Gold and Diamond at competitive prices
2. Examine, assort, value, parcel, market, and export Gold and Diamond
3. The export proceeds of the goods shipped by GGDO shall accrue as income to the whole nation.
4. Put the marketing of Gold and Diamond on an organized and sound basis, thereby increasing the free flow of foreign currency through the local banking system.
5. Institute more effective measures in the marketing of Gold and Diamond by ensuring that valuation is done with the highest standard of efficient, professional competence and integrity.
6. To provide a strong credible basis for government to raise external loans using its stock of Gold and Diamond if necessary.
   

From the inception of GGDO, the following were carried out:-

1. Purchase and sale of Diamonds
2. Valuation of Diamond and Gold
3. Collection of levy on diamond and gold export

PROCEDURE FOR EXPORT OF DIAMONDS

1. The exporter must have a license
2. The exporter should present the goods for valuation together with a copy of a “B” form (already filled up to the Government Valuer)
3. Valuation will be done in the presence of a Senior Mines Monitoring Agent, the customs Officer and the Exporter before the parcel is sealed
4. . Obligations of exporter:-
5. 
   1. Consolidated Revenue 0.75%
   2. GGDO operation Costs 0.75%
   3. Mining Community Development Fund 0.75%
   4. Independent Valuer Fees 0.40%
   5. Mines Monitoring Fees 0.35%
   5. All payments will be made in US Dollars for which receipts will be issued to The Exporter. The Government Valuer will make sure that every exporter presents a Bank Guarantee that the value of goods exported will be repatriated to Sierra Leone.
   6. The Government Valuer will cause the particulars of the package (Electronic Date about Certificate of Origin in Excel data-file and photos) to be sent to destination of the goods.
   7. On the compilation of all formalities and payments having been made, the Exporter will be handed his parcel sealed for export.

Since the implementation of the diamond Certification process in Sierra Leone in October 2000, exports from Sierra Leone have risen from US$ 10M to US$ 26M (60%) in 2002. With the implementation of the Global Diamond Certification System known as the Kimberly Process Certification Scheme (KPCS) in 2003, exports rose dramatically to US$75.97M (+ 80%).
The core function the GGDO is valuation of diamonds for export purpose and the collection of taxes levied on such exports. GGDO will remain committed to this core function for which it was created no matter who the supervising authority(s) are.

THE CUSTOMS AND EXCISE DEPARTMENT
Cline Town
Freetown, Sierra Leone
Tel: 232-22 227057

The customs and Excise Department is one of the operating Agencies of the National Revenue Authority charged with the responsibility of collecting indirect revenue in the following main categories:-

1. Import Duties
2. Excise on Petroleum
3. Other Excise
4. Domestic Sales Tax

The Department also collects the 3% withholding Income Tax, the ECOWAS Levy and the Road User’s Charge (RUC) for SLRA

• The customs and Excise Department is headed by a Commissioner for Customs & Excise assisted by a deputy Commissioner and three Assistant Commissioners.
• All importation into Sierra Leone exceeding goods value of $2000 USD must be subject to pre-shipment inspection (PSI), which should be submitted with the goods declaration.

• The key customs legislation administered by Customs and Excise department include

1. Custom tariff ordinance, 1932 with subsequent amendments
2. Customs ordinance, 1984/49
3. Customs Regulation 1948
4. Customs (Import and Export) order in council 1952
5. Customs and Excise code of rules, 1952
6. Appointment and Approval of Ports and Installations, 1952
7. Customs tariff Act 1978
8. Excise Act 1982
9. Sales Tax Decree 1995

• About 40 customs clearing agents operate in Freetown to perform clearing and forwarding Agency functions at the quay. These are private operations with licensed to operate from the ministry of transport and communication
  
• The Customs and Excise department also collect Sales Tax levied on all goods subject on customs and excise duty
• The Customs and Excise department is also responsible for the control of smuggling in collaboration with the national forces.
• The customs and Excise department allows certain classified importers to clear their imported goods duty free subject to the recommendation and approval by the Ministry of Development and Economic Planning, the NRA and the Ministry of Finance

AT CUSTOMS HOUSE (ONE–STOP–SHOP):
1. INGATE SECTION OF LONG ROOM:

The following procedures shall be observed at the INGATE Section of the Long Room.
a. Registration of Entries: All Bills of Entry are recorded in the INGATE register and stamped. Stamping of the Bill of Entry will also indicate whether goods are liable to rent or deposit.

b. Face Vetting: Assistance Collector (Long Room) will face-vet of all bills of Entry to ensure that
c. Description of goods, marks and numbers, rotation numbers and H S code numbers are properly typed in the appropriate columns on the Bill of Entry and that the Declaration is signed by the Importer or his Agent.
d. Relevant documents such as Import Duty Report, Bill of Landing, Invoice and any other special permit, clearance or certificates required to be attached to the Bill of Entry to facilitate the clearing of goods attached. After face-vetting any corrections on the Bill of Entry may be made before the next stage of the clearing process.

Validation, Classification and Valuation: The Valuation Officer carefully validates the Bill of Entry by ensuring that goods entered on the Bill of Entry are properly classified and in conjunction with the IMPORT DUTY REPORT, Importer’s invoice and database of values, confirms values and rates of duty.

Calculation of Rents, Penalties, Deposits etc After Bill of Entry is received from the Valuation Office, the Assistant Collector (Long Room) will ensure the calculation of: - Rent due to over stay
- Penalty for violation of pre-shipment inspection regulations
- Deposit and other penalties for violation of Customs Laws and regulations.

Bill of Entry Examination: The Bill of Entry Examination on the checking seat shall:

Examine the Entries to confirm that value of goods, rate of duty, amount, and all other relevant charges have been accurately computed and correctly entered on the Bill of Entry by the Importer or his Agent
.
Issue an assessment notice summarizing the categories and total amount of duty and penalties payable

The Assistant Collector (Long Room) checks and approve the assessment notice and ensures that the original copy of the assessment notice, the bill of all attachment are dispatched to the Out gate Section. The Duplicate copy of the assessment Notice is handed over to the Importer/Agent to prepare his Bank draft or Cheque.

2. OUT GATE SECTION OF LONG ROOM.

Upon the receipt of all entry and all attachment the Out gate Officer will hand over such document to the Importer/Agent to make his payment at the Cash Branch.

3. CASH BRANCH:

I. The Importer submit the bill of entry together with the Bank draft, Bank guaranteed Cheque and cash to the cashier. The cashier’s cash collection is limited to Le 100,000.00 per Bill of entry. On no account should this be exceeded.
II. Bill of entry and copies of assessment notice are serially stamped or “numbered”
III. Receipts are issued to cover amounts due received as per the assessment notice.
Entries are made in the cashier revenue and daily occurrence books (revenue cashbook).
Principal collector (finance, accounts and budgets) verifies the bank drafts, bank guarantees and ensures that amount received do agree with amounts stated on the bill of entry and assessment notice the principal collector (finance, Accounts and Budget) counter signs the reverse of the bank drafts and bank guaranteed Cheque, stamps and signs all copies of the bill of entry and returns to the cashier for detachment of RED COPY of bill of entry and receipts for delivery to the Importer/Agents. The Original and release copies of the bill of entry are sent to the manifest striking branch.

4. MANIFEST STRIKING BRANCH:-

Entries received from the cash branch are credited against the relevant manifests and the appropriate page of the Manifest is recorded on the face of the bill of entry and all attachments with RED PEN or a clearly distinct marker The Bills of entries are then entered for the outdoor section.

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