Monrovia – The Liberia Revenue Authority (LRA) and the Liberia Business Association (LIBA) have signed a memorandum of understanding (MoU) aimed at enhancing tax compliance among businesses in the country.
The partnership agreement, among other things, highlights the implementation of tax education and outreach activities among members of LIBA.
The MoU seeks to facilitate continuous engagement with the domestic private sector through the LIBA, being the umbrella organization for all Liberian-owned businesses in order to ensure the expansion of the tax net and foster collection of domestic revenues.
Speaking at the signing ceremony on Friday, December 22, 2017, at the LRA headquarters in Paynesville, LIBA President David K. Sembeh called on Liberian businesses to be fully tax compliant as the taxes they pay are the bedrocks for national and economic development.
Mr. Sembeh said tax paying is civic obligation by all businesses and individuals not only in Liberia but all across the world, noting that it is time for the business community in Liberia to collaborate with the LRA to enhance domestic resource mobilization as being done in other countries.
“We assure our commitment in fully implementing the directives of this MoU which will further strengthen the existing tie between LIBA and the LRA”, he noted.
The LIBA President intimated that most of Liberia’s development has been heavily reliant on donor support, and indicated that in the midst of growing donor fatigue, it was time for LIBA to work along with the LRA in helping to mobilize additional domestic revenues for Liberia.
The LIBA President assured that his organization will work along with the LRA to create awareness and boost tax compliance among especially Liberia businesses in the country.
LRA Commissioner General Elfrieda Stewart Tamba, in a remark, described the MoU as a great step forward in building partnering with relevant local institutions to enhance domestic resource mobilization.
“Today is a good day for Mama Liberia,” CG Tamba stated, adding that the MOU between LIBA and LRA signifies that both institutions can work together to build Liberia through the strengthening of domestic resource mobilization.
CG Tamba noted that achieving the LRA goals requires partnership and collaboration.
“We can only achieve domestic resource mobilization when we collaborate as stakeholders, and when we achieve our mandate, we achieve for the good of Mama Liberian and its people.”
The Commissioner General further added that the more government is empowered by the taxes collected, the more it will apportion resources to foster development and provide basic social services.
She pointed out that domestic resource mobilization is a major pillar under the Sustainable Devolvement Goals and the African Union, Africa Agenda which can be achieved through building strong partnership with vibrant local institutions.
The LRA Commissioner General praised LIBA for collaborating with the Authority in cultivating a meaningful partnership that is expected to boost tax compliance among businesses and revenue collection.
The implementation of the MoU is expected to commence 2018.