𝐁𝐲 𝐒𝐨𝐫𝐢𝐞 𝐅𝐨𝐟𝐚𝐧
After a week of adverse publicity over proposed fiscal concessions and incentives for one of the leading oil marketing companies in Sierra Leone, Aminata & Sons (SL) Limited, the Global Times newspaper has discovered that the story about tax waiver for the company is just an absurdly false and deceptive act. The company is merely seeking a tax payment deferral for a specific period of time and not a waiver.
Let us take a cursory glance at some of the proposed terms of the agreement between the Government of the Republic of Sierra Leone and Aminata & Sons (SL) Limited:
8.1 The company shall pay corporate tax consistent with applicable laws but shall be allowed loss carry consistent with applicable laws
8.2 The company shall pay personal Income Tax on the wages and salaries of both expatriate and local employees. Personal Income Tax shall be administered consistent with the provisions of Parts I and II of the First and Second Schedules
8.3 The company shall withhold tax on dividend paid to the shareholders of the company, consistent with Section 119 of the Income Tax Act, 2000;
8.4 The company shall be subject to Goods and Services Tax in accordance with the Goods and Services Tax Act, 2009;
8.5 The company shall withhold taxes on payments to suppliers and other contractors in accordance with the provision in the existing laws
8.6 The company shall apply for extension from payment of Payroll Tax in respect of expatriate employees for skills that are not locally available, consistent with applicable laws.
8.7 The company shall pay 0.5% ECOWAS Levy on the CIF value of all imports consistent with applicable laws
8.8 The company shall, commencing the effective date of this Agreement, be exempt from import duty on plants, equipment, machinery, turbines, pumps and load carrying vehicles required for the development, construction or operation of storage tanks, excluding cement, iron rods and zinc for a period of Five (5 years
8.9 The company shall be exempt from import GST on the plants, machines and equipment deemed for the rehabilitation and construction of the petroleum storage tanks to ensure availability of petroleum products at all times
8.10 The company shall be exempt from the payment of the 5% withholding tax (advance payment of corporate income tax), provided the company fully satisfies the requirements stipulated under Sections 114 and 20 of the Income Tax Act, 2018 respectively
8.11 The company shall be allowed a deferred payment of all import taxes on petroleum products for a period of Three (3) years but shall pay interest annually at the rate of 5% on the deferred amount
Tax payment deferrals are not new in this country. For example, when Alhaji Amadu Juldeh Sow wanted to re-establish the defunct Flour Mill at Cline Town in Freetown, he received a raft of fiscal concessions and incentives including tax payment deferrals from the Government of Sierra Leone.
Let us allow Aminata & Sons to grow so that they can effectively compete with the likes of Conex and NP (SL).
These oil marketing companies have over the years held this government to ransom by creating artificial scarcity of petroleum products.
Aminata & Sons (SL) Limited have stood up to these OMCs and they have succeeded in eliminating products shortage and artificial scarcity in the country.
Aminata & Sons are not asking for a pound of flesh. They are merely seeking a tax payment deferral. Period!
#CREDIT GLOBAL TIMES NEWSPAPER
