The government body in charge of handling all tax-related issues in Liberia is the Liberia Revenue Authority (LRA). It was founded in 2013 following the Liberia Revenue Authority Act to enhance tax collection and boost government revenue.
The board performs a wide range of duties, but they are primarily focused on raising money, managing taxes, and upholding tax rules.
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The following are some of the LRA’s crucial duties:
Tax policy formulation
The LRA is in charge of creating laws that support the nation’s economic aims and objectives. This requires working with many stakeholders, including government agencies, the commercial sector, and civil society organizations, to design policies that encourage economic growth, job creation, and social development.
Tax collection and administration
All taxes, including income, value-added tax, excise, property, and customs charges, must be collected and administered by the LRA. This entails the upkeep of a register, assessment, and collection, and offering taxpayers tax advising services.
Tax compliance and enforcement
The LRA is in charge of ensuring compliance with tariff laws and regulations. This is through conducting audits, investigations, and enforcement measures against taxpayers who do not pay their taxes or who participate in fraudulent or unlawful activity. To look into and punish tax evasion and other financial crimes, the LRA collaborates with other governmental organizations like the Liberia National Police and the Liberia Anti-Corruption Commission.
Customs and trade facilitation
Through managing customs laws and rules, including the collection of customs duties and taxes, and carrying out trade agreements, the LRA is in charge of facilitating trade.
Revenue forecasting and reporting
The LRA is in charge of estimating government revenue and reporting on trends in tax collections. The LRA regularly reports on income predictions and collections to the Ministry of Finance and Development Planning and other government organizations.
Taxpayer services
Taxpayer registration, tax filing and payment, dispute resolution, and other services are all offered by the LRA. To encourage compliance and voluntary tax compliance, the board also offers outreach and education initiatives for taxpayers.
Capacity building
Building the capacity of its employees and other stakeholders, such as tax authorities, and civil society organizations is the board’s responsibility to improve tax administration and revenue production.
The board operates under the jurisdiction of the Ministry of Finance and Development Planning. It is administered by a Board of Directors, which is responsible for providing strategic leadership and oversight. A Commissioner-General, chosen by the Liberian President with the support of the Liberian Senate, is in charge of the LRA.
Since its founding in 2013, the agency has significantly improved tax collection and income creation in Liberia. For instance, the agency collected almost US$570 million in taxes in 2019, which was a 22% increase from the year before, exceeding its income goal for the year. To simplify tax administration, the agency has also adopted some reforms, such as the implementation of a contemporary tax system, the automation of tax procedures, and the improvement of taxpayer services.
To perform its duties, the agency must overcome a variety of obstacles, including a lack of funding, poor infrastructure, and a complicated tariff structure. The agency has launched several changes targeted at enhancing tax administration and revenue collection to address these issues. The implementation of online tax filing and payment systems, the streamlining of tariff rules and regulations, and the bolstering of enforcement and compliance measures are only a few of these improvements.
Conclusion
In general, the Liberia Revenue Authority is essential to fostering Liberia’s economic development. The agency contributes to the development of a stable and predictable fiscal environment that is necessary for business and investment. This is done through the collection of taxes and other revenues, the enforcement of tariff rules and regulations, and the provision of taxpayer services and education. Although the agency will still have difficulties performing its duties, with the assistance of the public and private sectors, it can significantly advance Liberia’s economy.
