Over the past few years, Sierra Leone has made significant macroeconomic progress. Inflation, which stood at a daunting 54.5% in 2020, has been reduced to 20.2% by 2024. This reflects deliberate fiscal consolidation and stabilization reforms. Yet, while macroeconomic indicators are improving, the real impact on essential services—particularly in Water, Sanitation and Hygiene (WASH)—remains limited.

The country’s 2025 national budget allocates just 0.34% to WASH—a stark indicator of the chronic underfunding that persists in a sector critical to health, dignity, and human development. If we are to close the WASH access gap, we must look inward—toward domestic resource mobilization through taxation—as a credible, sustainable financing pathway.

Taxation: A Strategic Lever for WASH Financing

The Medium-Term Revenue Strategy (MTRS) and recent Finance Acts (2023 and 2024) have focused on expanding the tax base and strengthening public revenues. These reforms are timely and vital. However, it is now time to ask: can these gains be channeled toward transforming essential services like WASH?

A smart and equitable tax framework—where specific revenue streams are earmarked for WASH—can ensure that every Leone raised translates to improved service delivery in communities, schools, and health facilities. Taxes on luxury goods, extractives, and digital services could be redirected into a dedicated WASH Fund or financing poll, managed transparently and accountable to citizens.

Plastic Taxation: A Laudable Step Forward

One commendable measure introduced in the 2024 Finance Act is the imposition of a Le16 levy per kilogram of plastic. This not only contributes to environmental protection but presents a promising revenue source that could be partially allocated to addressing sanitation and waste management challenges—particularly in urban slums and flood-prone communities.

In a complementary move, the Act also grants duty-free importation for five years on any equipment used in the manufacturing of paper bags, cotton bags, compostable bags, or biodegradable plastic alternatives—provided they are not for resale. This progressive incentive not only supports green enterprises but aligns with broader sustainability goals, including those of the WASH sector.

Avoiding Regressive Taxation

That said, the push for increased tax revenue must be balanced with equity. Overburdening vulnerable populations with taxes on essential goods—such as food, fuel, or hygiene products—can deepen poverty and social exclusion. A progressive taxation approach, where higher-income groups and large corporations contribute more, can mobilize resources without harming the most marginalized.

From Revenue to Results: A National WASH Financing Strategy

WASHNet continues to advocate for a comprehensive national WASH Financing Strategy that integrates domestic taxes, donor support, and private sector contributions. Taxes such as the plastic levy can serve dual purposes—incentivizing behavior change while funding service improvements. But for taxation to work for WASH, we need transparency, ring-fencing of funds, and community participation in decision-making.

Taxation for Dignity and Development

With bold reforms already underway, Sierra Leone has an opportunity to reframe taxation—not merely as a fiscal tool—but as a transformative driver of human development. When smart tax policies support inclusive access to clean water and sanitation, they don’t just build infrastructure—they restore dignity, promote health, and unlock futures.

Linking taxes to tangible improvements in WASH services, the government can build trust with citizens and ensure that every Leone collected delivers real and lasting impact.