Martin E Michael, the Managing Director of Mercury International, took to Twitter to highlight a crucial change within the Sierra Leone Finance Bill 2024 which will see a 5% tax increase winnings .
In his tweet, Michael specifically noted the impact on Mercury International’s customers, stating that starting from the 1st of January 2024, a revised tax rate will be imposed on winnings above 1,000 units. He highlighted a 5% increase, explaining that individuals falling within this bracket will now have to pay 15% of their winnings to the government.
He remarked, “All Mercury customers who from 1st January 2024 (I presume that is the start date) win above 1,000 will have to pay 15% of their winning to Govt, an increase of 5%. So if you win 1,000 you pay currently 100 to Govt but from next year it will increase to 150.”
To elucidate the implications, Michael provided an example, stating that currently, if an individual wins 1,000 Leones, they are obligated to pay 100 Leones to the government. However, with the incoming alteration in the tax policy, this figure will rise to 150 units from the upcoming year, marking a 50% increase in the amount directed towards the government from their winnings.
The adjustment in the tax rates on lottery winnings, as highlighted by Michael, is poised to have a direct impact on customers participating in Mercury International’s lottery offerings. The increase, though aimed at bolstering government revenue, may potentially alter the financial landscape for individuals who experience such winnings.
The announcement by the Mercury International MD underscores the importance for stakeholders and customers to prepare for the upcoming changes in tax policy, indicating a significant shift in the financial responsibilities associated with lottery winnings in Sierra Leone from the commencement of 2024.
