Monrovia – The Liberia Revenue Authority (LRA) says taxpayers are at liberty to pay their taxes in both Liberia and United States dollar currencies.
LRA Commissioner General Elfrieda Stewart Tamba says, addressing the Ministry of Information weekly press conference Thursday stated that the basis for collecting taxes in both currencies are provided for under the law.
Legal basis for collecting revenues in Liberian Dollars are coined in the Public Financial Management Act and the Liberia Revenue Code, CG Tamba said.
The Commissioner General said taxes paid in Liberian dollars will be done so at the prevailing exchange rate as published by the Central Bank of Liberia.
Pursuant to Section 6(c) of the Liberia Revenue Code, “Except as otherwise provided by this Code, when it is necessary to translate foreign currency into Liberian or US dollars, or US dollars into Liberian dollars, the exchange rate shall be the applicable buying rate published by the Central Bank”.
Section 6(a) of the code further states that, “If payment is made in US dollars, the amount due in Liberian dollars is to be translated into US dollars at the market rate of exchange published by the Central Bank in effect on the day payment is made.”
The Commissioner General revealed that the LRA has been collecting revenues over the years in Liberian dollars on an incremental level, indicating that gross domestic revenues collected in Liberia Dollars has grown 5.4 times, from LD$1.2b in FY 2010/2011 to L$7.8b in FY 2015/16.
Meanwhile, in its quest to improve service delivery, increase voluntary compliance and protect national revenues, the Commissioner General disclosed that LRA is expected to begin a new tax payment regime in April that will ease tax payment and reduce revenue fraud.
This means that taxpayers will directly instruct banks to transfer from their bank accounts to the Government of Liberia’s Account at the Central Bank of Liberia (CBL) through a transitory account at the commercial bank.
The initiative is intended to ensure that taxpayers will not only pay but also trace all payments for taxes from their accounts.
This tax payment scheme, however, does not apply to payment of customs duties and it related taxes.
“This form of payment of taxes is a change from manual process of making payments by manager’s check and cash to the LRA and CBL to electronic payment mechanisms, “ Mrs. Tamba told the press conference.
The Commissioner General highlighted several reform initiatives embarked upon by the LRA including e-filing, paying taxes through mobile money and several others.
The initiatives, the CG noted, will reduce the risk of fraud, reduction in costs associated with banking of taxes collected and printing of security featured treasury receipts, increased efficiency in tax collection operations as a result of de-congested Revenue Halls.
CG Tamba says the LRA remains committed to improving the environment of paying taxes, and this quest to improving the system remains persistent.