The Minister of Finance has presented the 2026 National Budget to Parliament, outlining government’s fiscal priorities for the coming year. Total expenditure is projected at Le 18.5 billion, representing a 7% increase from 2025.
Key Highlights for Business:
1. Taxation Changes
| Item | 2025 | 2026 | Impact |
|---|---|---|---|
| Corporate Tax Rate | 25% | 25% | Unchanged |
| GST Rate | 15% | 15% | Unchanged |
| Small Business Tax Threshold | Le 200M | Le 250M | More businesses qualify for reduced rate |
| Import Duty on Raw Materials | 5-10% | 0-5% | Reduction for manufacturing inputs |
| Digital Services Tax | N/A | 5% | New tax on foreign digital services |
2. Infrastructure Investment
Significant allocations include:
- Energy: Le 450 billion for electricity generation and transmission
- Transport: Le 320 billion for road construction and maintenance
- Water: Le 180 billion for urban water supply projects
- Digital: Le 75 billion for national fiber backbone expansion
3. Private Sector Development
- SME Credit Guarantee Scheme: Le 50 billion allocation
- Youth Entrepreneurship Fund: Le 25 billion
- Export Promotion: Le 15 billion for SLIEPA activities
- Special Economic Zone development: Le 40 billion
4. Sector-Specific Measures
| Sector | Budget Provision |
|---|---|
| Agriculture | Subsidized inputs, mechanization support, irrigation development |
| Fisheries | Port infrastructure, cold storage facilities, vessel modernization |
| Mining | Geological survey funding, artisanal mining formalization |
| Tourism | Destination marketing, infrastructure at key sites |
5. Fiscal Outlook
- Deficit projected at 4.2% of GDP
- Domestic revenue mobilization target increased by 15%
- External financing from development partners: $120 million
- Domestic borrowing: Le 800 billion
Business Community Reaction:
The Sierra Leone Chamber of Commerce has welcomed the budget’s focus on infrastructure and private sector support but expressed concern about the new digital services tax. “We appreciate the reduction in import duties on raw materials, which will help local manufacturers,” said Chamber President Alhaji Muctarr Williams. “However, the digital services tax needs careful implementation to avoid unintended consequences.”
What This Means for Your Business:
- Manufacturing and processing businesses benefit from input duty reductions
- Exporters should explore SLIEPA support programs
- SMEs can access expanded credit guarantee and entrepreneurship funding
- Construction and infrastructure services see continued opportunity
Fritong Post will provide ongoing coverage of budget implementation and its economic impact.