Senior Programme Officer for Budget Advocacy Network (BAN) Abdul Rahman M.Sesay said that two years ago when they did a report they found out that Sierra Leone is losing an average of US$ 224 Million.
He made this statement on Tuesday November 26 at Committee Room N0.1 Parliament Building when BAN and Christian Aid together with their partners held a discussion on Budget Credibility Report to three committees in Parliament-Finance, Public Account and Transparency and Accountability Committees.
They explained that Sierra Leone is losing that money to issues around mispricing and underpricing which they captioned as “Transferred Pricing”
They explained that transferred pricing is when and how business people enter the country to do business in Sierra Leone and how business transaction is done in the country.
According to him, if a company wants to establish business in Sierra Leone, that company will underprice all the goods that they are bringing into Sierra Leone so that they would not pay the right tax- underpricing.
He explained that “mispricing” is when the owner is selling the company to another person by devaluing the company’s products so that government will not know the amount of taxes the buyer is paying.
“At the end of the day government is losing, so we did a study for just four companies, now BAN is working with government to see how they can put regulation in place to address this issue,” he stated.
He noted that if Sierra Leone can generate that kind of money per year, it will take them to another level.
He pointed out that if the country is not producing that much, it will affect the economy but once the country has resources, the government will be able to benefit immensely.
He explained that budget credibility is talking about managing the resources based on what you are generating but if they jump into more than what they do not have, it is a problem. Others speakers are Euan Davidson Consortium Team Leader Christian Aid and members of the three committees.