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Government of Sierra Leone Revokes Temporary Tax Incentives Granted to Sierra Rutile


The Sierra Leone government has revoked a generous tax break for mining company Sierra Rutile Limited (SRL), citing the company’s improved financial performance as a breach of good faith.

In a letter addressed to SRL and made available to Sierraloaded, Finance Minister Shęku A.F. Bangura announced the government’s decision to revert to the original 2001 agreement’s fiscal regime, effective July 1st, 2023. This move cancels the temporary tax base reset incentives granted in August 2021 to help SRL recover from financial difficulties.

The minister justified the action by highlighting SRL’s “increasingly growing reported revenues and Net Profit After Tax of over $75 million in each of the last two years.” He argued that this success, driven by increased production and rutile prices, contradicted the justification for the tax break and deprived the government of much-needed tax revenue.



Bangura emphasized that the initial tax incentives were offered “in good faith” to ensure SRL’s survival after it threatened to suspend operations in 2021. However, he expressed disappointment that SRL failed to inform the government about its improved financial situation.

“This is completely unfair to the Government and people of Sierra Leone,” Bangura stated, pointing out the missed opportunity to use the withheld tax revenue for development programs.

The letter instructs the National Revenue Authority to collaborate with SRL to determine the revised tax obligations under the original agreement. It concludes by urging SRL to “show responsible business practice” and accept the decision.



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Government to Add 5% Tax Increase on Lottery Winnings


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.



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