In a decisive move, Members of Parliament has deferred a proposed tax increase on rice imports, pushing the implementation of a 10% import duty from 2025 to 2026.
This follows an amendment by the Ministry of Finance, which initially sought a 5% increase in the 2025 Finance Bill to double the existing 5% tax rate from January next year.
However, after deliberations, Parliament ruled to postpone the increment, citing potential impacts on the cost of staple goods amid economic challenges.
The 2025 Finance Act, now finalized, keeps rice import duty at 5% through next year and includes further policy adjustments.
Tax on imported cooking gas remains steady at 5%, while the duty-free waiver on vehicle imports for NGOs and INGOs has been raised, allowing up to four duty-free vehicles for NGOs and ten for INGOs over a five-year span.
Additionally, Parliament maintained the 15 Leone tax on imported alcohol, a rate unchanged from previous years.
While the new Finance Act refrained from introducing additional tax hikes as initially outlined in the Ministry of Finance’s draft, it enforces stricter tax compliance measures and penalties for non-compliance.
The government’s reinforcement of existing tax laws, aimed at tightening collection and deterring defaulters, signals a strong stance on fiscal discipline heading into the New Year.
The 2025 Finance Act’s ratification marks a significant conclusion to fiscal debates, setting the stage for government revenue measures while easing the immediate tax burden on key consumer goods.
