The Impact of Donor Funding on Nra- Sierra Leone

INTRODUCTION The act of the bailiwick tax income sanction came into being on 13 September 2002. The National tax income Authority has a mandate to administer and collect each(prenominal) taxes, tax incomes and all penalties as stated in the NRA act. The purpose of the National taxation Authority is to serve as a central body for the collection and estimation of national tax revenue.The executing procedures and policies by the National Revenue Authority forget ensure that revenues are collected efficiently by enforcing specified laws through the provision of robust politics. However, the capacity of the NRA was inadequate to efficiently perform its mandates and broadcast the revenue needed for the socio-economic development. Against this background, several sponsor organizations including Dfid opted to support the capacity structure drive of the NRA.This study focalizees on Dfid as one of the major donors keep the NRA. I impart attempt to analyze the impact of Dfi d intervention in NRA, with specific focus on staff capacity and revenue mobilization. regard OF DONOR FUNDING ON THE OPERATION OF NATIONAL RENVENUE dictum With Dfid funding in July 2009, to strengthen the performance of NRA through ensuring compliance with international championship agreements, improving business processes and growing staff capabilities.Crown Agents was contracted to provide skillful assistance to the National Revenue Authority (NRA) in the Modernization broadcast to fool a benchmark wherein the institution (NRA) transforms into modern font and effective speciality through which to secure vital state revenues and to ensure that the sorely utilise Goods and Services tax revenue (GST) is viable and robust wherein NRA will have in place effective compliance management procedures. This reform courseme has intentional to deliver efficient and good customs and tax administration procedures to target international practice.Through its continuing support prog ram to NRA, the Department for international development (Dfid) has pledge its assurance to achieve the overarching poverty alleviation and the reduction of settlement on foreign aid through the effective collection of revenue which has gradually increase domestic revenue to build the nation from 65% dependency on foreign donors in 2000 to 40% in 2010. The modernisation program carried out by crown agent sponsored by Dfid comprehend the following areas ?Integrated Revenue Management Program- This area focuses on customs Modernization, Administrative Reform on Domestic Taxes, and the Implementation of Goods and Services Tax (GST). It also looks at the review of laws, procedures and structures to bring them in line with International best practice and to improve NRAs revenue collection story. This modernization theatrical role will involve capacity building in improving taxpayers audited account and compliance management and assist in the establishment of a new Domestic Taxes D epartment that will merge GST and Direct Tax operations. military man Resource and Institutional ontogeny Program- This modernization program is aimed at developing the human and institutional resource base of NRA by equipping it with modern performance management systems and procedures. Information systems should be enhanced under this program, transmute management strategies and improved monitoring and evaluation systems throughout the organization. ? Taxpayer Information and educational Program- This modernization program is aimed at changing the taxpaying culture in Sierra Leone through better information to the public and by assisting item-by-item taxpayers to understand their tax obligations. Consolidation of the Strategic Management Program- This modernization program focuses on the development of the NRAs Strategic Management capacity and institutional measure with international procedures and policies. Having gone through this modernization program, Dfid contracted anot her dresser known as United Nations Conference on Trade and Development (UNCTAD) in the provision of ASYCUDA to ? Abolish the bureaucracy and administrative hard cut back for both the business community and NRA. ? recoil the time used in processing and clearing of imported consignments under the previous manual system. Reduce revenue leakages and increases the collection of revenue ? acquire transparency in the usage administration of imports and exports departments in Sierra Leone. ? Assists the Customs Officers in providing consistent, fair and equitable treatment of all traders in applying the legal and regulatory framework ? Create equality and fairness among traders about response service and obligations. ANALYSIS ON THE IMPACT OF DONOR FUNDING ON THE OPERATION OF NATIONAL RENVENUE AUTHORITY Having looked at the impact of donor funding on the operations of National Revenue Authority (NRA).Their involvement in developmental activities in fortify the performance of NRA thro ugh ensuring compliance with international trade agreements is far but to be achieved base on the modernization plan, but having said this, betterment is on the way which has created an impact on the operations of the institution. Analyzing further, as to what the donor funds have done in the operation of National Revenue Authority may be highlighted below. ? Enable senior management to focus on the strategic issues, which will inevitably arise within respective(prenominal) Program and the overall Plan itself, leaving tactical decisions to middle managers. smear leakage and other revenue losses by reducing discretion, check smuggling, and instituting systems and find out. ? Increase revenue collection by improving on the might of the current revenue administration and then expand the revenue base by tapping into new taxpayers, facilitate trade, take advantage of opportunities and deal with challenges in the revenue administration environment. ? Reduce existing arrears to 5% u sing survey where necessary or litigation ? Improved and enhanced tax administration by computerization of operational and administration system. Develop and implement a robust monitoring and evaluation system ? Effectively monitor and control bonded warehouses to ensure compliance with laws and regulations, and verify inventories and internal controls on a quarterly basis. National Revenue Authority benefiting from donor partners has created an impetus on its operations. Therefore, having utilise all the modernization plans will suspensor NRA to increase their revenue collection base by strengthening the capacity of staffs.The introduction of GST under the interconnected management program as one of the modernization plan has help NRA to increase the Domestic Revenue which has reduced the dependency of foreign donors in our economy. The launching of ASYCUDA will reduce the bureaucratic and administrative work on both NRA and the community in reducing the time spent on processi ng and clearing of imported consignments under the previous manual system. ASYCUDA will reduce revenue leakages and increase revenue collection and transparency in the Customs administration of imports and exports departments in Sierra Leone.CONCLUSION Donor funding has increasingly affected the operation of National Revenue Authority in versatile ways and as a result, to that, revenue generation has increase tremendously, which has reduced the dependency on foreign donors. Modernization plan is a funded program by Dfid but contracted Crown Agent in the implementation of the plans and they further contracted UNCTAD in the provision of ASYCUDA in reducing revenue leakages and the increases revenue base. It further reduced the bureaucratic and administrative work on both NRA and the community. References Revenue and tax Policy Unit- MOFED Modernization Unit- NRA Website