Monrovia- The Liberia People’s Party (LPP) has called on the government of President Joseph Boakai to impose taxes on raw materials to strengthen the country’s economy, arguing that such a move could help reduce the debts owed to neighboring countries and international partners.
By Gerald C. Koinyeneh, [email protected]
Led by Cllr. Tiawon Gongloe, the LPP believes that taxing exported raw materials could generate substantial revenue for infrastructure development and social services. Speaking at a press conference over the weekend, LPP Chairman J. Yanqui Zaza emphasized that the policy would also encourage local processing of resources, create jobs, and reduce the country’s reliance on imports.
“A 10% export tax should be imposed on raw materials such as iron ore, rubber, diamonds, and gold. By doing so, Liberia can begin reducing its existing debt of US$2.3 billion and mitigate the impact of new debts from future loans,” Zaza said.
He cited a 2019 World Bank study that highlighted the low taxes paid by foreign investors, stressing the need to impose taxes on raw materials to benefit Liberia’s economy.
Chairman Zaza singled out ArcelorMittal Steel, one of Liberia’s largest investors, for not contributing significantly to the country’s tax revenue despite earning substantial profits of US$4.6 billion, US$5 billion, and US$4.98 billion in 2017, 2018, and 2019, respectively.
He also highlighted the inequality in Liberia’s tax system, noting that ordinary citizens are taxed on nearly every basic good, including water, bread, and nails, while foreign investors enjoy tax exemptions on raw materials. This, Zaza argued, places an unfair burden on ordinary Liberians.
The LPP believes that revenue from taxing exports could help reduce the national debt and prevent the need for taxing essential imports like rice, as is reportedly being considered in neighboring Sierra Leone.
“Taxation may seem undesirable, but it is a necessary means of financing the social infrastructure that binds a community together,” Zaza said.
He also called on lawmakers to review and enact the recommendations submitted by the Liberia Revenue Authority under the leadership of former President George Weah.
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