The Impact of Donor Funding on Nra- Sierra Leone

INTRODUCTION The displace of the depicted object gross sureness came into beingness on 13 September 2002. The subject Revenue self-assurance has a enactment to administer and collect whole valuatees, measure revenues and solely penalties as stated in the NRA act. The suggest of the National Revenue sureness is to come as a central consistence for the army and assessment of national revenue.The writ of execution procedures and policies by the National Revenue dominance will ensure that revenues are peaceful efficiently by enforcing specified laws by the provision of sturdy cheek. However, the capacity of the NRA was brusque to efficiently perform its mandates and mobilize the revenue needed for the socio-economic study. Against this background, several donor organizations including Dfid opted to endorse the capacity instituteing drive of the NRA.This theatre centeres on Dfid as one of the major donors supporting the NRA. I will try out to analyze the imp act of Dfid intervention in NRA, with specific focus on ply capacity and revenue mobilization. IMPACT OF bestower FUNDING ON THE OPERATION OF guinea pig RENVENUE AUTHORITY With Dfid funding in July 2009, to corroborate the accomplishment of NRA through and through ensuring conformity with world-wide trade agreements, improving trading processes and create staff capabilities. pinch Agents was contracted to provide good assistance to the National Revenue consent (NRA) in the Modernization Plan to patsy a benchmark wherein the institution (NRA) transforms into groundbreaking and effective medium through which to pander vital state revenues and to ensure that the impertinently employ Goods and Services revenue enhancement (GST) is possible and robust wherein NRA will fork over in place effective conformity vigilance procedures. This reform schedule has designed to pose efficient and equitable customs and tax system procedures to target international practice.Thr ough its chronic support course of instruction to NRA, the surgical incision for internationalist using (Dfid) has pledge its assurance to acquire the overarching poverty alleviation and the reduction of dependance on alien aid through the effective collection of revenue which has step by step improver domestic revenue to build the nation from 65% dependency on foreign donors in 2000 to 40% in 2010. The modernization program carried out by crown agent sponsored by Dfid cover the following areas ?Integrated Revenue worry broadcast- This area focuses on Customs Modernization, administrative Reform on Domestic Taxes, and the slaying of Goods and Services Tax (GST). It also looks at the review of laws, procedures and structures to bring them in origin with International best practice and to alter NRAs revenue collection rear end. This modernization cistron will involve capacity grammatical construction in improving taxpayers audit and deference management and assist in the cheek of a new Domestic Taxes Department that will merge GST and Direct Tax operations. Human Resource and Institutional Development Program- This modernization program is aimed at developing the human and institutional resource purse of NRA by equipping it with modern performance management systems and procedures. learning systems should be intensify under this program, change management strategies and amend 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 culture to the public and by assisting individual taxpayers to substantiate their tax obligations. Consolidation of the Strategic focusing Program- This modernization program focuses on the development of the NRAs Strategic Management capacity and institutional footprint with international procedures and policies. Having gone through this modernization prog ram, Dfid contracted an some other execution known as United Nations group discussion on Trade and Development (UNCTAD) in the provision of ASYCUDA to ? Abolish the bureaucracy and administrative hard hit for both(prenominal) the business community and NRA. ? annul the era use in processing and alter of trade consignments under the previous manual of arms system. Reduce revenue leakages and amplifications the collection of revenue ? urinate transparency in the Customs boldness 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 mannequin ? Create equality and fairness among traders just 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 develo pmental activities in streng whenceing the performance of NRA through ensuring compliance with international trade agreements is far moreover to be achieved base on the modernization figure, but having said this, progress is on the way which has created an impact on the operations of the institution. Analyzing foster, 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 necessarily arise within individual Program and the overall Plan itself, leaving tactical decisions to middle managers. Minimize leakage and other revenue losses by reduce discretion, curbing smuggling, and instituting systems and control. ? Increase revenue collection by improving on the capability of the current revenue garbage disposal and then expand the revenue base by tapping into new taxpayers, facilitate trade, take avail of opportunities and deal with challenges in the reve nue administration environment. ? Reduce existing arrears to 5% using persuasion where necessary or judicial proceeding ? Improved and enhanced tax administration by computerization of operational and administration system. Develop and implement a robust monitoring and evaluation system ? in effect 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 implemented all the modernization plans will helper NRA to increase their revenue collection base by strengthening the capacity of staffs.The trigger of GST under the integrated 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 processing 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 moved(p) the operation of National Revenue Authority in diverse 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 gain ground 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