A looming economic crisis is gripping Freetown’s Central Business District as shops struggle to keep their doors open amid soaring taxation rates imposed by the government’s National Revenue Authority (NRA). Numerous establishments have been forced to shut down operations, leaving the public with limited access to their essential services.
Sources within the NRA have disclosed that the prevailing situation has inflicted significant losses on the government’s revenue from goods and services. Shop owners, deeply affected by the heavier tax burdens, have raised their voices in protest, fearing that their businesses are on the brink of collapse due to what they perceive as excessive and detrimental government decisions.
Since shop owners united in their resolve on Monday to protest these onerous tax policies, the government has yet to address their concerns. Their primary grievances revolve around the imposition of double taxation and the introduction of NRA staff into their operations, with the cost being transferred to the taxpayers.
Prominent Business Tycoon, in an exclusive statement to our press, shed light on the multifaceted economic ramifications of these burdensome taxes. “High taxation, particularly in terms of goods and services, creates a complex issue for economic development. It can deter businesses from investing and expanding, ultimately leading to reduced profits and limited capital available for research, development, innovation, and growth. This vicious cycle obstructs economic development, as businesses are less inclined to generate new jobs and contribute to technological progress.”
Moreover, he emphasized that excessive taxation renders businesses less competitive, resulting in higher prices for goods and services. This, in turn, diminishes their ability to compete with businesses in countries with more lenient tax structures, potentially leading to a decline in export competitiveness and a hindrance to overall economic growth.
“High taxation discourages entrepreneurship and hampers the establishment of small businesses. Entrepreneurs already face substantial risks when launching new ventures, and heavy taxation further discourages them from pursuing their innovative ideas. Small businesses play a pivotal role in stimulating economic growth by generating jobs and fostering innovation,” he underscored.
As the standoff between business owners and the government escalates, the economic stability of Freetown hangs in the balance, with the fate of countless businesses and livelihoods at risk. Stay tuned for further developments on this pressing issue.