The โMajority Blocโ of the Honorable House of Representatives- HOR under the gavel of Speaker Richard Nagbe Koon, has enacted into law four financial instruments.
A statement issued by the HOR Press Bureau says the body took the decision on Tuesday, December 17, 2024, during the first day sitting of the extension of the third quarter of the first session following a report from its joint committee on Ways, Means and Finance Committee and Judiciary.
The bloc, following the recent submission of the instrument by President Joseph Boakai, to the legislature, requested the committee to review instruments including the Bank-Financial Institutions and Bank-Financial Holding Companies Act of 2024, Tax Amendment Act of December 2024 amending the Liberia consolidated Revenue Code as amended, Tax Amendment Act of 2024 amending certain portions of Chapters 8 and 10 of the Liberia consolidated Revenue Code as amended and an Act to amend Sections 1003 and 1066(a) of an Act to amend Part III, Chapter 10, of the Revenue Code 2000 to provide for value added Tax (VAT) replacing goods and services tax (GST).
The joint committee, in its report, requested amendments considering the critical necessity to enhance revenue generation efforts in order to improve public service delivery and address the pressing socio-economic challenges faced by our nation.
The committee added that the bills are part of a broader strategy to support the national budget and aim to create a more robust and adaptable revenue system that will respond effectively to current pressures and lay the foundation for long-term economic stability and growth for the people of Liberia.
The amendments are expected to impact various sections of the Revenue Code, specifically regarding royalties on iron ore, gold, and other base metals; Withholding tax on payments to residents and non-residents; Excise taxes; and Transactions between related persons.
They are also expected to affect the tax imposed on goods and services, additionally, proposing a revised VAT rate of 15%, a reduction from the current rate of 18% as established in the VAT Act of 2024.
Meanwhile, the instruments have been forwarded to the Liberian Senate for concurrence.
