TAXPAYERS EDUCATION STRATEGIES FOR SMALL AND MEDIUM TAXPAYERS PRESENTED BY: MOHAMED BANGURA, PUBLIC AFFAIRS OFFICER National Revenue Authority of Sierra Leone

BACKGROUND The National Revenue Authority was established in September, 2002 with the mandate of collecting domestic taxes It currently has 3 operational agencies- the Income Tax Department, the Customs and Excise Department and the Non-tax Revenue Department. The taxes collected by the NRA include: Customs and Excise duty; Income Tax and Non-tax revenue The NRA collected about Le 619,542 billion for the revenue year 2008 Its annual collection amounts to about 12.5% of the GDP Ratio The NRA has almost completed preparations for the introduction of the Goods and Services Tax (GST) or VAT

Small and Medium Taxpayers in Sierra Leone Small and Medium Taxpayers Regime in Sierra Leone fall within the standard assessment bracket administered by the Income Tax Department (ITD) They are being administered by Small and Medium Taxpayers Offices (SMTO) that are found in all the Tax Districts within the ITD Payment rates depend on the category of the SME SMEs are in the majority of taxpayers They have mostly not been compliant with their tax obligations

Need for SME Education Campaign Not Registered Businesses Mostly Illiterates Lack of Record Keeping No Bank Accounts Standard Assessment applies They make profit

NRA Public Affairs and Taxpayers Education Campaign A new Commissioner General was appointed in January, 2008 IFC/FIAS designed a Communications Strategy for NRA More personnel were recruited to the Public Affairs and Taxpayers Education Unit (PATE) IFC provided technical and financial support to embark on a massive sensitisation campaigns

Taxpayers Education Campaign Strategies for SMEs Sustainable radio and television discussion programmes Production and airing of radio and television adverts (jingles) Production of monthly bulletin Production of a quarterly newsletter Holding of quarterly press conference Street campaigns Contracting Town Criers to disseminate information Erecting bill boards nation-wide Designing, airing and publishing advertorials Redesigning our website Partner with radio and night clubs Disc Jockeys Partner with religious leaders

PATE IN ACTION PATE in Action Newspaper AdsStreet Campaign Billboards Radio Discussion Programmes Workshops

Collaborating with Small and Medium Taxpayers Organisations Conduct trainings for SMEs eg Sierra Leone Indigenous Business Association (SLIBA), Petty Traders Association Invite SMEs to participate in radio and television discussion programmes Participate in most of their programmes Provide financial support for some of their programmes Occasionally organise social functions to which they are invited

Challenges and Outcome of Taxpayers Education for SMEs The cost implications for maintaining such campaigns are very high The simultaneous collection of local taxes is making compliance difficult Some SMEs still do not see the need to pay taxes Integrity problems with some tax officers Compliance is gradually improving Collection rate for SMEs is also improving Revenue targets are now being met

I THANK YOU FOR YOUR ATTENTION GOD BLESS US ALL