President Julius Maada Bio signed the Finance Act 2024 into law on Monday, October 20, 2024, following its approval by Parliament in December 2023.

The Act introduces several new tax measures aimed at boosting government revenue, but citizens are expressing growing concerns over the financial strain it will place on their daily lives.

One of the most controversial provisions is a 5% Import Duty tax on rice, set to increase to 10% in 2025. This move has sparked outrage among Sierra Leoneans, given that rice is a staple food in the country.

With the current cost of a bag of rice ranging between Le 1,020,000 and Le 1,250,000, many fear the new tax will make it even more unaffordable.

“The price of rice is already too high, and now with this new tax, it will only get worse,” lamented Mohamed Sawaneh, a local teacher.

“We understand the government needs revenue, but they must consider the harsh realities we face daily. The cost of living is unbearable.

In addition to rice, the Finance Act imposes a 20% tax on cement, 5% on cooking gas, and 10% on iron rods—materials critical for construction and household needs.

Other provisions include a 10% tax on gambling, betting, and lotteries, and a 1% education levy on companies. Furthermore, excise duties have been introduced on plastic products, while withholding tax rates on dividends, management fees, and lottery winnings have been raised to 15%.

While the Act provides certain reliefs, such as reducing the Minimum Alternate Tax (MAT) rate for loss-making companies from 3% to 2%, many feel these measures do little to ease the burden on ordinary citizens.

The reintroduction of GST exemptions for machinery in sectors like agriculture, manufacturing, mining, and petroleum is seen as a boost for industry, but for most Sierra Leoneans, the focus remains on how the new taxes will affect everyday essentials.

As the Finance Act 2024 comes into effect, many are calling on the government to reconsider some of these measures, particularly the tax on rice, which they argue will worsen the already challenging economic conditions for the majority of citizens.

Despite public outcry, the government remains firm on its position, emphasizing the need to increase revenue for national development programs.

However, as prices of essential goods continue to rise, the gap between policy and the harsh realities faced by ordinary people continues to widen.