An assessment of Siela Leone’s tax system and its revenue capacity

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University of Dar es Salaam
The deterioration of tax revenue performance, hence to estimate the country's tax revenue capacity. Regressing tax revenue as a function of explanatory variables of per capita income, agricultural ratio in GDP, financial services, business transactions, mining & quarrying, and a dummy variable that captured the effect of the rebel war, provided a conclusion that all the explanatory variables, except the agricultural sector, have a positive relationship with tax revenue in Sierra Leone. The study reveals that there is a line of best fit between the dependent variable and the explanatory variables and this relationship is explained by the explanatory power of the R-square of 63 percent. The problems that were discovered in the Sierra Leone's tax system emanated largely from general ineptitude the tax administration, poor working conditions of employees, ill-equipped shabby offices and improper accountability for tax revenues collected. On the policy front, tax authorities are yet to design and implement a tax system to bring on board activities in the agricultural sector, that are responsible for lowering tax revenue collection in Siera Leone. Alongside this. Policies should be designed to encourage investment in economic activities that increase tax revenue collection, some of which include financial services, business transactions and mining activities.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HJ 2351.4.S5N3)
Tax collection, Revenue, Sierra Leone
Nabieu, S.E (2004)An assessment of Siela Leone’s tax system and its revenue capacity.Master dissertation, University of Dar es Salaam, Dar es Salaam.