Parliament on Wednesday, 27 November 2025, enacted the Finance Act 2026 after an extended and spirited debate that lasted into the evening hours, marking a major fiscal milestone for Sierra Leone. The legislation, passed with amendments, provides the framework through which the Government will impose, revise and administer taxes necessary for national development over the coming financial year.

The Finance Act 2026 is designed to give legal effect to the Government’s financial proposals, improve revenue collection, enhance tax enforcement mechanisms and support the long-term economic vision of the state. Debate on the Bill drew contributions from both the Government and Opposition sides, highlighting strong bipartisan interest in achieving a more resilient and transparent revenue system.

Presenting the Bill, Minister of Finance Sheku Ahmed Fantamadi Bangura stated that Sierra Leone must strengthen its capacity for domestic revenue generation if it is to meet its development obligations. He disclosed that the Government has committed to raising NLe 2.5 billion to support ongoing and new interventions across the country.

According to the Minister, the Finance Act 2026 proposes amendments to several key laws, including the Customs Tariff Act of 1978, the Excise Act of 1982 and the Income Tax Act of 2000. Those reforms, he said, are aimed at modernizing tax administration, broadening the revenue base and aligning the country’s fiscal regime with regional benchmarks.

He noted that Sierra Leone currently ranks low in tobacco taxation within the sub-region and that the new adjustments will bring the country closer to global and regional health policy standards. He further stated that revenue from proposed changes in the cement sector is projected to reach NLe 207 billion, while petroleum sector reforms will introduce a more transparent cost structure.

“The Act also strengthens GST certification to ensure that institutions receiving public finances are properly monitored,” he said. The Minister stressed that the reforms aim to improve tax efficiency and strengthen enforcement systems. He added that the legislation includes provisions to address environmental concerns, with certain exceptions granted on petroleum gas to encourage responsible energy use.

Minister Sheku Ahmed Fantamadi Bangura assured Parliament that the passage of the Finance Act would significantly boost domestic revenue mobilization and support the Government’s efforts to stabilize and grow the economy.

Chairman of the Parliamentary Finance Committee, Hon. Francis Amara Kaisamba of Kenema District, praised the Ministry of Finance for assembling a comprehensive Bill. He emphasized that Government requires substantial resources to provide electricity, roads, healthcare and other essential services.

He acknowledged recent reductions in the price of food commodities and argued that a modest increase in cement would not severely affect citizens. “The Government must have the resources to meet the needs of the people,” he said, encouraging MPs to support the Bill.

However, the Bill faced strong scrutiny from Opposition members who argued that some proposed tax adjustments could impose economic hardship on Sierra Leoneans.

Deputy Leader 2 of the Opposition, Hon. Aaron Aruna Koroma of Tonkolili District, stressed that while taxation is a key revenue tool, implementation remains the country’s biggest challenge. He referred to page 40 of the Bill, noting that when MDAs levy fees, there is often a lack of transparency on what has been collected.

Hon. Aaron Aruna Koroma rejected the proposed cement increment, describing it as “a fundamental abuse on the people.” He warned that any increase in fuel prices would deepen poverty and raise the cost of goods and services nationwide. “We hope these increments will not trigger a surge in the prices of commodities,” he cautioned.

Opposition Whip, Hon. Abdul Karim Kamara, of Kambia District similarly argued that petroleum products are politically sensitive and any price increase would have immediate and widespread social consequences. He urged Government not to impose tax adjustments on petroleum and cement, though he welcomed increased taxation on tobacco. He encouraged the Ministry to remain sensitive to the economic realities of citizens.

Deputy Leader of Government Business, Hon. Saa Emerson Lamina, rooted his position in Section 110 of the 1991 Constitution, which governs taxation. He dismissed some Opposition claims, arguing that no country can achieve sustainable development without inclusion of private sector players in national taxation and regulatory frameworks.

He commended the Finance Minister for efforts to stabilize inflation and called on MPs to support revenue measures that would enable the Government to deliver on its development agenda. “Taxes must be paid to support the operations of the State,” he remarked.

Opposition Leader Hon. Abdul Kargbo, concluding the debate for the Opposition, expressed frustration at Sierra Leone’s continued struggle with revenue mobilization despite its mineral wealth. He cited corruption, tax evasion and theft as major obstacles to development. “The Finance Act must be strategic; ensure compliance, block leakages and prevent corruption,” he said. He urged Parliament to sanction MDAs that fail to comply with existing financial laws.

Closing the debate on behalf of Government, Majority Leader Hon. Mathew Sahr Nyuma emphasized that the Government’s Big Five Changers agenda requires strong revenue support. He praised the Ministry of Finance for its hard work and highlighted President Bio’s continued commitment to economic stability and improved livelihoods for citizens.

He argued that domestic revenue generation has long been a challenge due to politicization and inconsistency in policy implementation. “Politics must hands-off revenue mobilization,” he said, insisting that the petroleum sector, in particular, must remain depoliticized to ensure transparency and efficiency.

Hon. Mathew Sahr Nyuma accused some private businesses of exploiting citizens through unjustified price increases, despite the Government’s efforts to reduce cement prices. He reiterated that Sierra Leone’s biggest problem is not policy formulation but implementation and enforcement.

Responding to issues raised during the debate, Sheku Ahmed Fantamadi Bangura reiterated that the essence of the Bill is to raise revenue to deliver essential services. He noted that the petroleum sector was previously controlled by a small group of actors, but reforms have now ensured a more transparent and competitive marketing structure.

“Let the House give approval for Government to source revenue and deliver for the people,” he appealed, assuring MPs that Government will continue working to reduce economic burdens on citizens.

The passage of the Finance Act 2026 marks a pivotal moment in Sierra Leone’s fiscal reform drive. As global economic pressures continue to affect local markets, the new Act provides a structured pathway for improving domestic revenue collection, promoting transparency and strengthening economic resilience.

The success of the Act will depend on its effective implementation, an issue highlighted across both sides of the parliamentary aisle. With its enactment, Sierra Leone now faces the task of ensuring that the new revenue measures translate into improved public services, economic stability and long-term national development. https://thecalabashnewspaper.com/parliament-endorses-major-tax-reforms-to-support-sierra-leones-development-agenda/