Monrovia – The Liberia Business Association (LIBA) has condemned the Government of Liberia for levying new taxes on imported alcoholic beverages, other commodities and imposition of additional tariff on phone calls in the country.

Report by Edwin G. Genoway, Jr – edwin.genoway@frontpageonline.com

LIBA is the umbrella organization responsible to advocate and seek the interest of Liberian owned businesses.

“We categorically condemn the Government for levying new taxes on goods and services,” LIBA President, D. Maxwell Saah Kemayah said when he addressed a news conference in Monrovia Friday.

President Sirleaf recently submitted the 2016 Tax Amendment Act aimed at addressing Government’s economic and financial crisis.

But while the government sees the new taxation as austerity measure to support its current budget, many Liberians including entrepreneurs are complaining about the additional constrain it would cause for the already ‘messy’ economy.

In the first quarter (past six months) of the 2016/2017 fiscal periods, the Government has only been able to raise US$159million out of US$600million budget.

The government now faces a daunting challenge of raising over US$400million in order to meet up with the 2016/2017 fiscal timeline.

The latest tax increment on imported goods and commodities, including one cent tax levy on each one minute GSM Call is said to be a backup for the government to mitigate its prevailing economic and financial miseries.

The new tax levies on goods seem to be already affecting almost all of the local business sectors in the country as the bill awaits the President’s signature to become a law for all Liberians to obey.

Bad Precedence

However, LIBA’s Kemayah described the new tax levies as bad precedent for Liberian businesses.

He argues that Liberians are already suffering and trying to overcome the already hardship created by government, saying “Liberians are currently benefiting three days free calls provided by GSM companies and government is trying to stop that”.

He continued: “You cannot treat the common people in this manner, the new tax levies is a complete setback for Liberian businesses. We are calling on the President of Liberia not to sign that bill into law if she really love her people who elected her; our people are also enjoying the three days free calls provided GSM companies, charging extra on a minute call locally is another burden for the citizens themselves.”

More Complains Pile

The GOL’s latest tax levies have met serious discontentment amongst Liberian businesses, with some staging protest recently at the Freeport of Monrovia.

The Free Port protest saw several marketers severely brutalized by riot Police after the protesters tried to erect a blockade at the main road to the port.

The protest gathered steam after importers also complained that their goods were being held at the Free Port of Monrovia for too long due to high tax levies, something they said was crippling their businesses ahead of the festive season.

Recently, a group under the banner “Association of Telecom Consumers” also raised contention when they petitioned the Legislature, requesting the body to reject the increment on GSM calls. Something they claimed would affect the three days free calls.

In their petition, the group stressed that taxation on calls per minute would directly affect low income earners who are already struggling to cope with prevailing economic situation.

The group claimed that such decision would make access to information and communication technology very expensive for low income earners.

The petitioners stated: “This will result in a double taxation for consumers who are already paying 15% GST on the sale cost of scratch cards.” 

The group claimed to be representing citizens from the 15 political subdivision of Liberia, including marketers, telecom consumers, low income earners, doctors, and students.

But the Liberian Legislature on Capitol Hill ignored that petition and later passed the new tax act into law, which now awaits the Chief Executive’s approval before being printed into handbill.

The situation remains tense as ordinary citizens, especially business owners, continue to decry the high tax rates, which have impacted the increment of food and other essential commodity prices on the local market.

‘Cut Down Expenditure’ – Kemanyah says

“We are calling on the Government to reverse its decision because laws are meant to benefit the people and not suffer them,” Mr. Kemanyah said, suggesting the slicing of government’s recurrent expenditure as a remedy to the looming budget short fall.

Rather than imposing new taxes, Mr. Kemayah suggested that cutting down its expenditures in the budget will improvise for competing national priorities.

“You do not impose taxes to solve the problem of budget shortfalls. We believe that the best way to resolve this problem is for the Government to cut off some of her expenditures and divert those resources to essential national priorities,” he said.

He hailed the Government’s recent pronouncement about relaxing the tax levies for the festive season, but advised that a lasting solution to the problem must be found rather than “shying away from the issue”.

“We want to command the Government for relaxing the taxes for the festive Christmas season, but we believe that we must work collectively to identify lasting solution to the problem,” Mr. Kemayan pointed out.

MOU with US Chapter

Meanwhile, the Liberian Business Association has announced the signing of an MOU (Memorandum of Understanding) with its USA branch.

LIBA President Kemanyah said the MOU would create market linkages for Liberian businesses and connect them to their counterparts in the United States.

The MOU is also expected to provide training for Liberian businesses to build their capacity for advancements, Kemayah said.  

The agreement would also explore and attract several investment opportunities from the United States to Liberia.

Following a week-long assessment of the country’s business sector, the LIBA-USA delegation is expected to scout potential investment in the areas of Internet Technology (IT), import and export, and the surveying f possible areas for market exchanges.

“We are here to help Liberian businesses to grow and be more competitive.”

“We are not here to compete with them,” Jackson K. George, head of the LIBA-USA branch, said at a news conference held over the weekend.

George said the MOU will improve the relationship with LIBA and its USA partners, saying it will also increase business relationship with the United States of America amongst others.

Monrovia – The Liberian Business Association (LIBA) and the United States Chapter of the Association has called on the Government of Liberia to demonstrate its political will towards creating an enabling business environment.

The two bodies made the call while signing a Memorandum of Understanding which, among other things, seeks to create partnership and collaboration in an approach to contribute to the economic growth and development of Liberia.

It also seeks to improve and enhance the foundation for business environment within the borders of Liberia and the United States of America.

LIBA’s President Dee-Maxwell Kemayah who represented and signed for the Association   in the United States, said though government has been working towards the improvement of the business environment, more still needs to be done to strengthen the sector.

Speaking to journalists following the signing of the MOU, Kemayah stressed that under the MOU, the Liberian Business Association in Liberia and the Liberian Business Association in the Americas are to serve as advocates for Liberian owned and operated businesses and ensure that they have both the requisite technical capabilities and managerial skills.

Speaking further, the LIBA boss explained that the Liberian Business Association in the Americas is required under the MOU to provide the requisite and technical knowledge to LIBA – Liberia, its executives and members to do business in America.

It is also required to Assist in travel arrangements of executives and members of the Liberian Business Association in Liberia to the United States of America for business purposes on behalf of LIBA – Liberia and their respective businesses and facilitate networking and linkage building for LIBA – Liberia, its executives and members to find goods and services at reasonable cost

Also speaking the Executive Director of the Liberian Business Association in the Americas Jackson George described as welcoming the MOU and assured that the Association in the Americas will do all it can to honor its aspect of the deal.

George said, under the agreement, LIBA-Liberia will assist in arranging for the process of resettling in Liberia members of the Liberian Business Association in the Americas who wish to return home and may need accommodation to lease or rent for business purposes

He furthered that LIBA-Liberia will also assist in arranging for the Clearing of Goods from the Freeport of Monrovia for LIBA – USA, its executives and members.

George stressed that unless Liberian businesses can collaborate and understand themselves, the Liberian economy will continue to be dominated by foreigners.  

Monrovia – The Liberia Business Association, an association of Liberian owed businesses says it is not getting any support from the Government of Liberia.

Report by Mae Azango Maeazango@frontpageafricaonline.com

“It is no longer a secret that the Liberian Business Association, (LIBA) is left out of the government. We are not against foreign business partners, but since we were established, we have not gotten any budgetary support from the government.

We only got support from former Central Bank Governor Mills Jones, who supported us, that our people politicized his gesture. So if we can partner with you or any of your partners, it would be a blessing to us, because the Liberian Tailor Union is also a part of us,” says David Sembeh, Vice President, LIBA.

During a courtesy call of Mr. Boniface Ihiasota, Publisher of Excel Magazine, at the LIBA office in Paynesville, LIBA VP Sembeh further told Mr. Ihiasota, that the Association is happy to partner with the magazine through the Tailor Union. In that if other investors invest in Liberia in the future, it will create job opportunities for many Liberians to be able to fight poverty.

“Just tell us what part you want us to play when you are ready, and we will do it, and we will also be willing to partner with any organization, just keep in touch with us,” Sembeh said.

For his part, Mr. William Montgomery, an independent consultant at LIBA said: “When I worked in Ghana before, they used to wear African attire every Friday in promotion of African culture”. But said since he has been working in Liberia, he has not seen any fashion show to exhibit Liberian made African textiles.

“As you have come to partner with the Tailor Union, I also urge you to host training workshops for them to be able to do quality work. Because most often, many tailors would do half way jobs and sell. Because if Liberia must take part in fashion shows in the future, they should be able to do quality work that will encourage buyers,” he said.

A delegation of 29 persons from the Liberian Tailor’s Union, headed by the Assistant Minister of Tourism Jacqueline Capehart , were invited to travel to the US, by Excel Magazine and Kimma Wreh of Tekay Design, to showcase their culture designs at the fashion show in Washington DC, slated for the 28^th of July.

In this regard, as the fashion show approaches, the host and Publisher of Excel Magazine, Mr. Ihiasota, came to Liberia to do an assessment on the business climate in Liberia, to take back to their partners in the US and Nigeria to see about possible investment. 

“Yes, training is also part of what we are planning to do with the Tailor Union, because showcasing Liberians designs to the outside world, we need quality.”

“I will take back all you have told me to my partners and see how best we can partner with you through the Tailor Union. Because it was because of the Tailor Union, we are hosting a fashion show in Washington DC by the end of July,” Says Mr. Boniface Ihiasota, Publisher of Excel Magazine.

“This is why the delegation of 29 persons, headed by the Assistant Minister of Tourism Jacqueline Capehart, who are traveling to the US to showcase their cultural designs at the fashion show, would not have been possible without the hard work of the Tailor Union’s good will ambassador Kimma Wreh, who asked me to reach Liberia during my trip to Ghana,” said publisher Ihiasota.

During his visit, Mr. Ihiasota also met with the Ministry of Commerce and Industry, Federation of Road Transportation Union of Liberia, Information Cultural and Tourism, Liberia Revenue Authority (LRA).

Others includes: The Liberian Amputee football team, the Group of 77 through the second Lady Mrs. Boikai and the National Union of Organizations for Disables. He is to meet with the Liberian President Ellen Johnson Sirleaf and Vice President Boakai for an exclusive interview and will stay for the Independence Day celebration to be highlighted in the EXCEL magazine International.