Between 2010 and 2015, personal income taxes (PIT) constituted an average of 26.5% of the total revenue collected by the National Revenue Authority (NRA) of Sierra Leone. 86% of the PIT collected in 2015 was from Pay As You Earn (PAYE). The remaining 14% was split between withholding taxes on personal income (9%), rental income (2%) and other income (3%). In 2019, the contribution of PAYE to PIT had increased to 91.7%. This high reliance on PAYE raises some equity concerns. It suggests that most of the PIT is collected from individuals in formal employment (such as government employees and employees in large private sector companies) who earn relatively modest incomes. Meanwhile, high income professionals and other wealthy individuals remain largely untaxed.
Completed Project