5% duty on Imported Rice to Fund the ‘Feed Salone’ initiative … SLPP Gov’t On “Cut Ya, Put Ya” Syndrome

By VOS Writer

Since the passing of the 2024 Finance Act which brings about 5% duty on imported rice, alots of critical minds have opposed this tax policy, stating that when such is implemented it could have trickling down effect on the price of the product in the market.

Basita Michael, former President of the Bar Association, Lahai Marrah, Former APC MP and Ady Macauley, Former ACC Boss took to the social media to give their analysis about the 5% duty on rice.

According to Basita, she said that in as much as Sierra Leone depends on rice as its staple food the imposition of the 5% duty on the product has the tendency to escalate the price, potentially rendering it unaffordable for many SierraLeoneans and consequently posing a threat to food Security in the country.

Lahai Marrah also expressed similar sentiments, describing the tax policy as a slit on the throat of the citizenry and a stabbing on their left chest especially in a time like this when World Bank Report has shown that more than half of SierraLeone’s population cannot feed themselves. He also continued by stating that this policy is meant to create starvation amongst citizens that could stimulate economic slowdown, adding that at this stage, tax cut on essential commodities like rice is necessary.

Toeing the line of these critical thinkers, the Former ACC Boss, Ady Macauley tweeted that the SLPP Government at this stage is not expected to increase taxes on rice, cement, gas and iron rods, and called on  Government to reduce their expenditures by cutting down on the wagebill; imposing travel restrictions on public officials and putting an end to the daily buying of gas guzzling V8 Toyota Land Cruisers for political appointees; and reducing on free fuel allocation for Political Appointees etc.

According to him, the main reason for this tax is to pile more misery on the poor to secure the privileges of the Political class.

With all of these assertions, a Seasoned Economist who preferred to remain anonymous has given an expert opinion on the 5% duty on rice, further stating that   the consumers will bear the burden as the tax would be passed along to the  consumers via higher price.

He described this tax policy on rice as very regressive as it could discourage investment and impede economic growth. Currently, he said,  majority of the people are struggling to get a meal a day and with this tax hike their suffering  would exacerbate through the increasing cost of the already expensive imported rice.

The APC Members of Parliament also raised objection about the increase in taxes on cement, rice, and iron rods and advised the Government to look at the implications that could cause more suffering on the people of Sierra Leone.

“if this bill is passed as it is, it would cause suffering to the people of SierraLeone”, says the Deputy Leader of the Opposition, Hon. Aaron Koroma.

The Opposition Leader in Parliament, Hon. Abdul Kargbo stated that the current economic situation is not good to write home about and advised the Government not to increase tax on essential commodities at this time when the economy is in trouble. “Tax imposition on rice has shown that the Government is not doing justice to the people of Sierra Leone”, he added.

Justifying the Government’s position on the 5% duty on rice, the Minister of Finance, Sheku Fantamadi Bangura, stated that the 5% import duty will not increase the price of rice, but failed to give the yardstick for arriving at such conclusion.

He said the 5% duty on rice will help to raise revenue for Government to protect and promote local rice production in the country.

Sampling the opinion of the citizenry about the 5% duty on rice, they expressed their disappointments on the Government for doing injustice to them, adding that “We are not expecting the Government to impose tax on rice especially in this critical time when majority of us are struggling to make ends meet”.

When asked about their opinion on the justification advanced by the Minister of Finance, they described that as a bogus excuse, noting that if the Government wants the ‘Feed Salone’ initiative to be attractive they should have first invested in it with positive results and before any tax could be imposed on imported rice which  could give the investors the alternative to invest in local rice production.