By Amin Kef Sesay
In a letter written by the Financial Secretary, Sahr Jusu, addressed to the Governor of the Bank of Sierra Leone, Professor Kelfaila Kallon and dated 5th February 2021 he stated that they refer to their correspondence of 5th January, 2021 on the subject of “Implementation of The Provision on Exemption of Goods And Services (GST) Tax on Financial Services In The Finance Act 2021” saying they would like to bring to his attention that they Implementation Of The Provision On Exemption Of Goods And Services (GST) Tax On Financial Services In The Finance Act 2021 have received report from the Indian High Commission through the Ministry of Foreign Affairs and International Cooperation, stating that commercial banks continue to levy GST on financial transactions, contrary to the provision stipulated in the Finance Act 2021.
The Financial Secretary said ,as he as Governor knows, the Finance Act 2021 amends item 10 of the Second Schedule to the Goods and Services Tax (GST) Act 2009, which relieves financial services operating under financial institutions licensed, regulated and supervised by the Bank of Sierra Leone Act, 2019 or any other similar enactment from the payment of GST.
It continued that in such a respect they would be most obliged, if he could kindly instruct all commercial banks to comply with the said provision not to levy GST on customers’ financial transactions, and if GST has already been charged and collected on such transactions effective 19 January, 2021, the amount so charged and collected should be refunded to the customers’ account with immediate effect.
