A new report reveals that Sierra Leone’s government faces challenges in revenue collection due to widespread tax evasion by informal workers and traders. The informal sector, a key driver of the economy, remains largely outside the tax net, limiting government resources.

While experts explore ways to integrate informal businesses into the tax system, concerns remain about striking a balance between taxation and sustaining job creation. Overregulation, they warn, could stifle economic growth and worsen unemployment.

Authorities are now reviewing tax policies to ensure fair contributions from all sectors without undermining the informal economy’s vital role in national development.