NRA Is On A Strong Foothold

A very articulate and dynamic personality, Haja Kala Kamara, Commissioner-General, Sierra Leone’s National Revenue Authority, NRA, has beefed-up the revenue profile and modernisation outlook of the Authority. When she assumed the office in 2009, there was apprehension, coming mainly from her critics, as to whether she would succeed. She has proved them wrong. Today, there are on-going rapid modernisation processes, intensive staff training, coupled with an unquenchable thirst for revenue generation, which today, has reached the trillion Leone (Le) mark, exceeding its target. Little wonder, Mr. President confirmed her appointment recently.  Haja Kala Kamara spoke to ABUBAKAR HASHIM in an exclusive interview at her office.Excerpts:

Since you assumed office in 2009, what have been your challenges and achievements?

The NRA was established through an Act of Parliament, the NRA Act 2002, with the core mandate of assessing and collecting revenues on behalf of the government. In addition to this, it is responsible for trade facilitation, border control and management, and to ensure product standards.

Since its inception in 2003, government has depended on domestic revenue for national development and economic growth. To achieve this, the Authority has made tremendous efforts to improve the effectiveness and efficiency of its administration. Revenue collection grew from a low base of Le277 million in 2003 to Le700 million in 2009 and Le1.87 trillion in 2012. Whilst revenue collection has been impressive over the years, this became evident since I joined the Authority in 2009, when the Authority started exceeding its target, a trend that has continued to date.

Prior to this period, the NRA’s collections relative to set targets were hardly anything to boast of. This prompted the implementation, under my leadership, of several reform measures funded by DFID under the NRA/DFID Modernisation Programme. These included, among others, the implementation of the Goods and Services Tax, GST, and the Customs clearance automated system, the ASYCUDA++, the introduction of the Taxpayers Identification Number, TIN, and payment of revenues through commercial banks, encouraging stakeholders’ collaboration, the establishment of the Domestic Tax Department, DTD, and the Revenue Investigations and Intelligence Unit, RIIU. Most recently, the DTD was computerised through the implementation of the DTIS software.

The benefits of these reforms became obvious in 2011, when the NRA did not only exceed its target, its collection reached a landmark trillion. This year, the Authority again made history by collecting Le1.081 trillion in the first half of the year.

In spite of the positive impact of these reforms on revenue mobilisation, the Authority has been subject to notable challenges. Government’s desire to encourage private investment has resulted in some trade-offs in revenue mobilisation. Tax exemptions and tax holidays granted to hotels, mining and agricultural companies have derailed NRA’s effort to broaden the tax base and institute a fair tax regime.

Another key challenge has been financial constraints to fully execute our planned revenue mobilisation strategies. Commissions due to the NRA for revenue collections are often delayed and not provided in full by the Ministry of Finance and Economic Development. The existence of porous borders makes it difficult to effectively man our borders. The lack of NRA-owned office accommodation is also a challenge so is the fact that the NRA/DFID modernisation programme which brought about most of the reforms implemented over the years has now ended.

Quite recently this year, challenges to revenue mobilisation have continued to prevail. A notable one has been the negative public euphoria suffered by the Authority as a result of the discovery of the alleged NRA/Ecobank fraud. Whilst the discovery was made possible through the existence of systems and processes within our operations, the public has viewed this with discontent and it has dented our image with them.

In response, Management continues to strengthen existing systems, internal controls and audits, and the newly established Revenue Investigations and Intelligence Unit. It has also revised and improved on relevant clauses in the MoUs with the transit banks.

Some of the challenges are largely outside our control and require political support from our supervisory ministry, the Ministry of Finance. Had these challenges been addressed, the NRA would have been the highest performing Revenue Authority in the sub-region.

What is the present relationship with the Nigeria Customs Service?

As part of its strides to finance its reform programme and ensure effective collaboration within the sub-region, the NRA sought assistance from the Nigeria Customs Service for capacity-building and the provision of logistics for our Customs department.

In 2010, representatives from the NRA Customs participated in a regional meeting of experts organised by the World Customs Organisation, WCO, in Banjul. The need for regional integration and regional assistance was emphasised during this meeting. Nigeria, in particular, was encouraged to take the lead, in helping less capacitated Customs departments in smaller countries in the sub-region. In response to this, the NRA, in December 2011, requested bilateral relationship with Nigeria Customs. This was accepted in principle, and followed up with a visit to Sierra Leone in early 2012 to undertake needs assessment of NRA Customs. Following that visit, a proposal and training needs plan was prepared and forwarded to the Nigeria Customs Service. Consequently, our proposal for assistance was accepted and a vehicle, computers, printers, photocopiers and furniture worth US$100,000 were procured and handed to the NRA by top Nigeria Customs Service delegates. Also, in 2012, His Excellency, Mr. Eyo Asuquo, the Nigeria High Commissioner to Sierra Leone, accepted our invitation and agreed to be guest of honour at our 2012 Annual Awards Ceremony. Whilst the bilateral agreement exists in principle, it remains to be formalised, most likely at the next WCO conference.

How will you assess President Koroma’s six years in office?

Initially, implementing development programmes was mostly dependent on donor-funding, but as the NRA continues with its reforms, we have experienced a notable increase, from 40 per cent to 60 per cent and up to 80 per cent, on domestic revenue contribution to national development.

As a result, His Excellency continues to show a lot of interest in the activities of the Authority. He supported the implementation of the NRA/DFID modernisation programme. Most specifically, he supported the introduction of the GST, the merger of the GST department with Income Tax into the Domestic Tax Department, and the payment of taxes through commercial banks.

With the introduction of the Performance Tracking system, the President signs contracts with Ministries, Departments and Agencies, MDAs, including NRA, to ensure transparency and accountability of our activities. This process is a monitoring mechanism and ensures performance evaluation, the resultant effect of which is the award of certificates for best performers and the naming and shaming of the least performers. This year the NRA was awarded a silver certificate for its performance in 2012.

How does the future look for the NRA?

The future for NRA is bright. Having successfully completed the final phase of the DFID/NRA modernisation programme in March 2013, we are hopeful of DfID’s continued support to the NRA to strengthen its administration and ensure maximum revenue collection through sound policy reforms, the provision of requisite technological support, improved staff capacity, and assisting management re-position itself to meet the demands of modern tax issues.

Furthermore, the anticipated increase in production and exploration activities of mining companies in the country will increase the tax base. This is indicative of the improved revenue collection from the mineral sector in 2012 compared with previous years. Also, the newly established National Minerals Agency with which the NRA works closely, gives an indication that increased revenue will be realised from this sector. The NRA plans to set up an Extractive Industry Revenue Unit to handle the technicalities involved in the assessment and collection from this sector.