IMPLEMENTATION OF THE PROVISION ON EXEMPTION OF GOODS AND SEVICES (GST) TAX ON FINANCIAL SERVICES IN THE FINANCE ACT 2021
We refer to our correspondence of 5h January, 2021 on the above subject and would like to bring to your attention that we have received report from the Indian High Commission through the Ministry of Foreign Affairs and International Corporation, stating that commercial banks continue levying GST on financial transactions, contrary to the provision stipulated in the Finance Act 2021.
As you know, the Finance Act 2021 amends item 10 of the Second Schedule to the Goods and Services Tax (GST) Act 2009, which relieves financial services operating under financial institutions licensed,
regulated and supervised by the Bank of Sierra Leone Act, 2019 or any other similar enactment from the payment of GST.
In that respect, we would be most obliged, if you could kindly instruct all commercial banks to comply with the said provision not to levy GST on customers” financial transactions, and if GST has already been charged and collected on such transactions effective 1″ January, 2021, the amount so charged and collected should be refunded to the customers’ account with immediate effect.
We thank you for your usual cooperation.
The Hon. Minister of Finance
The Hon. Deputy he Minister of Finance I
The Hon. Deputy Minister of Finance 2
The Commissioner General, National Revenue Authority
The Managing Directors of all Commercial Banks
The President, Sierra Lcone Chamber of Commerce, Industry and Agriculture
The President, Sierra Leone Importers Association
The President, Siera Lecone Bankers’ Association