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NRA Engages Taxpayers on the Implementation of ECR

February 17, 2021

By Jeneba A Conteh

National Revenue Authority (NRA) has on the 16th February engaged Taxpayers on the implementation of the Electronic Cash Register (ECR) at Atlantic Lumley Hotel in Freetown.

ECR Consultant at NRA, Plauid Kibogo, said Section 25 1,2 and 3 of the 2018 Finance ACT gives the NRA the authority to install the Electronic Fiscal devices in business premises while Section 34 (1,2,3,4) of Finance ACT 2020 mandated all registered GST businesses  in their ordinary course of business, to maintain an Electronic Cash Register, for the purpose of invoicing and recording all transaction duties authorized by the NRA.

He said the ECR machines will help taxpayers keep and track daily sales records easily and allows taxpayers to automatically calculate easily and accurately, as well as categorizes GST and non GST items.

 He said the scheme will ease the application of the relevant tax rates and replaces the manual process of handwriting NRA-GST receipts by automated process.

He said the device will provide taxpayers the opportunity to track turnover of each sales location online and help to isolate smugglers and illegality by using fiscal receipts.

The consultant said the ECR will come with a lottery program which taxpayers and customers can win some prizes.

Sales Director of Eltrade, the company that supplies the electronic device, Miroslav Todorov, said the company was established in 1995 and that they have produced over 1000,000 devices.

He said the company is present in 34 countries with 180 highly qualified employees, adding that they are the most experienced fiscal suppliers for Africa.

He said each taxpayer’s sale point will install and operate approved machine that will produce certified invoice for each transaction and that each invoice has unique digital signature to validate its authority.

He said the machine has the tendency to send encrypted invoice date to dedicated server, which processes the date and generates reports.

He said monitoring on all taxpayers and all transactions increases tax revenue standardization of invoices and business processes and ensures fair competition among businesses using the machines.

He said the machine has a reliable date for each transaction and ensures clear and transparent auditing process.

He the standardized invoices with digital signatures will enhance authenticity multiple times and ensures easy ways of audit and invoice verification system.

Director of Machining Research and Planning Department at NRA, Philip M. Kargbo said NRA has the mandate not only to legislate tax policy or increase tax rate, but to also assess and collect domestic tax rate on behalf of government.

 He said the context of believing that mandate was bound to how they can improve compliance of taxpayers and how they can improve efficiency of the tax administration system.

He said in 2016, they conducted tax administration dialogistic assessment, and, as well undertook an entire analysis on the tax administration in Sierra Leone.

He said they had several issues that came out from that assessment and one among them was the way the country  administers goods and services that was not actually  consistent.

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