By Amin Kef Sesay
It is an incontrovertible fact that the private sector in any country, if it is properly functioning, forms the hub for accelerated growth.
The public sector, which is dominated by the Government of the day cannot definitely mobilize all the financial and human resources required to implement various development projects or undertake the setting up or running of certain enterprises.
In some instances the private and public sectors partner together to undertake the execution of certain projects or the setting up of certain business ventures. The fact of the matter is that there must be a symbiotic relationship between both the private and public sector because it is only through such that the standards of living of the citizenry could be enhanced.
In much as it is the Government that has the mandate to map out policies and put into force legislations that have bearing on the private sector such must be done cautiously in order not to impinge negatively on the private sector which could have the rippling effect of affecting the symbiotic relationship between the two that could cascade adversely on the standard of living of the ordinary man.
Agreed, market or external forces may dictate the nature of the relationship between the two sectors but it is highly important to navigate through those forces in order to achieve a win-win situation.
It cannot therefore be overemphasized that the enabling environment must be created by any Government that is in power in order to see the private sector, which includes the business community, grow buoyantly and contribute immensely towards overall national development through reduced cost in the prices of basic commodities and the timely payment of taxes.
If on the other hand, the business sector is suffocated by unreasonable policies or legislations passed by the public sector (Government) then such will be inimical to the rapid attainment of development and consumers will have to bear the brunt which will be evident in high prices of goods and services that are either produced locally or imported.
Having laid the aforementioned basis, this medium learnt that for many Sierra Leoneans it has now become very heart rendering that one of their favourite consumed products, Margarine butter, is currently out of their reach because the price keeps skyrocketing.
“It is mind boggling that we can no longer afford to procure margarine butter which we have used to consume over the years because it is a butter of high quality,” some of them bemoaned adding that every day the price keeps going up.
This medium, which does not believe in blindly casting blame on business persons or traders for the skyrocketing prices of essential commodities, decided to delve deeper by conducting an investigation in order to get at the root cause for the rise in the price of margarine butter.
When at first we contacted petty traders or shop owners to know why the drastic rise in the price of margarine butter they explained that it is not their fault but they are pegging the price based on how they bought it from wholesalers.
“We just don’t determine prices according to our whims and caprices but rather according to the market forces,” those contacted overwhelmingly intimated.
Our next point of contact was the importers of Margarine butter. According to all that were interviewed it came out glaringly that they are seriously concerned over the additional new Excise Tax of 10% on the Cost Insurance and Freight (CIF value) contrary to what they used to pay in the past before clearing a container full of margarine butter at the Queen Elizabeth 11 Quay in Freetown.
The embittered importers reiterated that the Finance Act of 2021 has imposed an additional Excise tax of 10% on imported Margarine butter which is consumed every day by individuals from all walks of life in society.
According to them, before this time, they as importers used to pay about 50% of CIF value as tax to the National Revenue Authority (NRA) on a container of imported Margarine butter at the Quay.
They disclosed that, however, on the 1st February 2021 the NRA commenced the implementation of the Finance Act 2021 which imposes an additional 10% Excise duty on a container of imported Margarine.
According to them, because of this new development, they as importers, now have to pay about 65% of CIF value as tax to NRA contrary to the 50% which they used to pay thereby placing an additional 15%.
Based on what this medium learnt, this new increase in tax has definitely shoot up the price considerably as importers have now factored the additional Excise tax in the prices which consumers have to contend with.
According to what was intimated, before May 2018 there was a 20% excise duty or custom duty levied on a container of imported Margarine butter, which was increased to 30% in May 2018.
Lamentably, based on the information provided by the importers, it has now been increased to 65% which is deemed as a big blow especially at this material point in time when most business entities have been seriously affected by the prevailing corona virus.
It could be recalled that margarine butter has been consumed in this country for quite a long period of time now by many people as bread and butter are considered to be the second staple food after rice.
However, from what was gathered with this astronomical rise in excise duty it is obvious that it is out of the reach of many because the price of one packet of margarine butter has definitely gone up.
A Social Commentator has averred that during these difficult times when cost of living is going up every day Government should consider reducing tax on basic items like margarine butter.
Indeed it is understandable that the Government is in dire need of revenue which could have influenced the National Revenue Authority (NRA) to increase custom duties. However, it must be considered that majority of Sierra Leoneans are grappling to make ends meet and astronomically prices are definitely worsening the poverty level or rate.
It is against such a backdrop that it is prudent, on the part of Government, especially the Ministry of Finance and the NRA, to have a rethink and do the needful in revisiting the 2021 Finance Act in order to see what amendment(s) could be made to reduce the suffering on the ordinary man.
If the Government, headed by President Bio, is keen on wooing investors and beefing the private sector then it is high time that the right enabling environment is created for that sector to achieve a win-win situation so that improved standard of living could be enhanced.
It must be underscored that where the cost of living is high then correspondingly the standard of living will definitely degenerate.
