By: Nat Bayjay,nbayjay2010@gmail.com (231-77-402737)

The unanimous passage of the Revenue Code Thursday by the House of Representatives of the Liberian National Legislature might serve as the solution to the numerous complaints and concerns from Liberians regarding what they term as the hectic bureaucratic and high revenue tax procedure in the country. The Revenue Code is now pending concurrence by the Liberian Senate.

Thursday’s passage of the Revenue Code began with the reading of recommendations from the House’s Committees on Ways, Means and Finance and Judiciary. The Chairman of the Ways, Means and Finance Committee, Margibi County Rep. Emmanuel Nuquay outlined several amendments to the existing code, key among which he stressed on the issues of attractive tax incentives and luxury vehicles.

If concurred by the Liberian Senate and enacted into law, the Revenue Code of 2009 will be one of the vital legislations to be passed by the National Legislature that will bring relief to thousands of Liberians, especially those in the Diaspora who are fearing the huge bureaucracy and the high cost of the country’s revenue system.

The Revenue Code emanated from the Executive Branch of Government sometime ago as crafted by the Ministry of Finance, which submitted it to the 52nd National Legislature for enactment into law. This was followed by deliberations on the Revenue Code by stakeholders and experts who rendered their own expertise at the time before the House’s Committee on Ways, Means and Finance.

Rep. Nuquay said, ““Bearing into consideration the high financial crisis, this act seeks the survival of our economy. It is very important. So, we therefore beg your endorsement of this act which is geared towards empowering our people economically by passing this act into law which will stimulate economic activities and create jobs for them”.

Currently, there is a high percentage on the clearing or importation of a luxury vehicle (and other goods) which has been one contentious point by a lot of Liberians importing or purchasing vehicles that are classified as such.

Chairman Nuquay, in a bid to convince fellow legislatures, told of the importance of the act as it provides more attractive tax incentives for anyone wanting to invest in the leeward counties of the country, like in the South-Eastern counties of Grand Kru and Maryland or the North-Western counties of Lofa and Gbarpolu which will be higher than investing in counties closer to the capital like Margibi or Bomi Counties.

Critical areas that were incorporated into the draft act by the Committee, according to Rep. Nuquay, included the issue of high punishments meted out on violators who fail to pay on time and the reality of what exactly a luxury vehicle is.

He explained to honorable members of the House that the Committee recommends that luxury vehicles be considered from the value purchase of US$40,000 and upward.

Luxurious vehicle, according to the existing act, is classified as a vehicle with a high engine capacity. But the amended version, when passed into law, will be vehicles valued at US$40,000 or more.

“If you can afford a US$40,000 vehicle, then you’re well-off. But we think it’s unfair that people have to pay up to US$2,000 for a vehicle that is not too costly but seen or classified as luxurious”, the Margibi County lawmaker said.

The issue of high tax on luxury vehicles is also a critical issue for which the Ministry of Finance and the Authority of the Freeport of Monrovia are most often labeled as the “devil” that has been scaring away exiled and other Liberians from importing vehicles.

But the House’s passage of the act has now set it at the value of US$40,000 upward; however, the new percentage on that amount will be addressed in the new tariff amendment being crafted by the Ministry of Finance. According to Rep. Nuquay, the House will immediately deliberate on the amended tariff when it returns from its constituency break in January, 2010.

Another Liberian lawmaker from the newly created county of Gbarpolu Rep. Dixon Yarsiah before making the motion that led to the passage of the draft act congratulated the joint House’s Committee. Nimba County Rep. Edwin Gaye said, “Our people in the Diaspora will be relieved because this issue of engine size and luxury vehicle is long updated”.

Meanwhile, the passage of the Revenue Code by the House of Representatives has been described as a relief to the Ministry of Finance by some members of the august body.

Liberia’s Finance Minister Augustine Ngafuan during a tour of the Customs Division at the Freeport of Monrovia Thursday morning told a cross-section of custom workers and officers as well as custom brokers that the passage of the revenue code currently before the National Legislature will be a relief to addressing some of the numerous problems at the Port as far as clearing of goods and containers is concerned.