“Fragility, Taxation and Development: Reflections

Transcript:“Fragility, Taxation and Development: Reflections:
“Fragility, Taxation and Development: Reflections from Liberia” Dec 7-8, 2022 Sierra Leone Tax for Development Conference. The Radisson Blu, Freetown Jimmy suah Shilue Strengthening Fragile States Through Taxation (FRAGTAX) In Partnership with: NUPI & CMI PRESENTATION CONTENTS OVERVIEW OF THE ASSIGNMENT Brief Background OVERVIEW OF DOMESTICE RESOURCE MOBILIZATION IN LIBERIA APPROACH (METHODOLOGY) FINDINGS CONCLUSION/OBSERVATION RECOMMENDATIONS OVERVIEW OF THE Study Gauge the perception of citizens in selected districts of Margibi County and parts of Montserrado on tax compliance issues, particularly real estate tax. To help enhance understanding of citizens’ perceptions of tax collection in Liberia Generate formative data that the Norwegian Institute for International Affairs (NUPI) can use to shape its ideas in anticipation of a forthcoming national study on taxation, particularly citizens’ compliance in fragile states. At the interception of domestic resource mobilization in Liberia, lies citizens’ demand for the provision of basic social services, adequate social safety net and wealth redistribution. Why a paradigm shift? OVERVIEW OF DOMESTIC RESOURCE MOBILIZATION IN LIBERIA For decades, Liberia relied heavily on Natural Resource (NR) exploitation as major source of revenue generation. The resultant effects of this have led to major spending deficits, which the government has filled by borrowing from the Central Bank, tapping into its reserves, and relying on foreign loans and aid. The Government of Liberia (GoL) has taken measures to diversify and expand its tax base, minimize revenue loss and ensure adequate and predictable multiyear financing of national development plan, the Pro-Poor Agenda for Prosperity and Development (PAPD). Beginning in 2012, key reform measures were taken by the Government. BY 2013, GoL removed the responsibility of revenue collection from the Ministry of Finance and established the Liberia Revenue Authority (LRA) in 2013. While these efforts remain laudable, challenges remain, in large part inextricably linked to structural weaknesses, particularly in the governance structure, limited institutional capacity, transparency and accountability, etc. Without a realistic decentralization plan and stable domestic revenue base, these services and aspirations become difficult to effectively achieve FRAGTAX STUDY APPROACH Methodology FINDINGS - Demographic information The study was conducted in four (4) districts in Margibi (Mamba Kaba, Firestone, Kakata, Gibi) and one in Montserrado (District #5 Old Matadi area). FINDINGS- Property Ownership All one hundred-sixteen (116) respondents who participated in the study said they own various undeveloped lands and residential properties, with a few saying they own commercial properties. On average, property values ranged between $2,500- $5,000 USD.