By Foday Moriba Conteh
In Sierra Leone the effects of continued imposition of higher taxes by Government can nave dire consequences, particularly in the context of giving rise to the widespread phenomenon of smuggling. As a nation heavily dependent on essential goods, largely not produced internally but brought in by businessmen and entities, it is important to somehow be incentivizing those that are making it possible for such essential goods to be available against the backdrop of economic sustenance and growth.
While the nurturing of local industries remains a focal point, it becomes imperative to underscore the pivotal role played by entities that bring in essential goods. These entities serve as pivotal actors in revenue generation, shaping consumer choice, and fostering employment opportunities. Thus, striking a delicate equilibrium between taxation policies and the vitality of the business sector assumes paramount importance.
At the heart of the discourse lies the substantial revenue accrued from taxes mobilized from the business sector, which constitute a crucial source of funding for indispensable public services and infrastructural projects.
However, the imposition of exorbitant tax burdens runs the risk of stifling the activities of the business sector, especially large entities, thereby impeding revenue streams and hindering overall economic advancement.
Fundamentally, the principle of consumer choice, inherent to the dynamics of a free-market economy, hinges upon access to a diverse array of products, whether domestically produced or relate to those that are brought in. Any measures that curtail the operations of business entities that bring in essential goods run counter to this principle, potentially stifling innovation and eroding market competitiveness, thus fostering an environment conducive to illicit trade practices such as smuggling.
The proliferation of smuggling not only leads revenue losses for the Government but also engenders distortions within market dynamics, underscoring the necessity for a conducive environment that facilitates legitimate business activities.
Furthermore, entities that bring in essential products serve as catalysts for employment generation and economic vitality across various sectors of the economy. From micro-enterprises to large-scale corporations, these entities sustain a vast network of livelihoods, thereby underpinning social stability and fostering economic growth.
In light of these considerations, policymakers are called upon to accord due priority to the protection and support of entities that are engaged in sourcing essential products to make them available for widespread consumption. Through the formulation and implementation of enlightened policies, coupled with concerted efforts from all quarters of society, Sierra Leone stands to benefit a lot.
Therefore higher taxes must be discouraged to prevent massive smuggling in order to foster an environment wherein shared prosperity flourishes.
