Liberia: LRA Sets US$1 Billion Revenue Target

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Liberia: LRA Sets US$1 Billion Revenue Target
Liberia: LRA Sets US$1 Billion Revenue Target

Africa-Press – Liberia. James Dorbor Jallah, Commissioner General of the Liberia Revenue Authority (LRA), is setting his sights high, aiming to raise US$1 billion in revenue this year. He, however, acknowledged that it would take intentional, drastic efforts such as reducing waste in government operations and addressing revenue leakages to take the right steps towards raising domestic resources for impactful national development initiatives.

“Our internal target is that we will raise one billion. And the way we will raise the one billion — if we just close the waste and abuse — we will get to the one billion in no time,” he said.

Jallah emphasized that reaching the one-billion-dollar revenue collection milestone is feasible through deliberate and pragmatic measures to rectify policy shortcomings that currently allow for undue waivers and revenue losses.

He spoke at a national dialogue on decentralization, transparency, and domestic resource mobilization organized by USAID’s Local Empowerment for Accountability and Decentralization (LEAD) Activity in partnership with the Ministry of Finance and Development Planning (MFDP). The forum serves as a platform for stakeholders to discuss strategies for enhancing domestic revenue mobilization, while ensuring transparency and accountability in governance.

Jallah highlighted at the event the urgency of addressing financial inefficiencies.

However, Jallah’s statement is in furtherance of his predecessor, the late Thomas Doe Nah, expressing the possibility of taking the country’s annual revenue collection to a billion U.S. dollars or more.

The current CG expressed concern over discrepancies within the LRA itself, noting instances where individuals within the organization appeared to be living lavishly while earning modest salaries.

Recently, the Ministry of Finance and Development Planning submitted the draft national budget for 2024 to the House of Representatives, amounting to US$692 million.

“How is it possible that people working in the LRA are immersing themselves in big houses, compounds, and all of that? We want to understand how they are playing that magic so we can help Liberia play it, too,” Jallah wondered.

“So, my people need to explain to me how they make money that is so small, and you managed to do this (living in a mansion), because once we learn the techniques, hopefully we can extend it to the country and not have any problems,” he added.

Jallah emphasized the need to understand and rectify such disparities, suggesting that the techniques employed by these individuals could be applied more broadly for the benefit of Liberia.

According to him, the game is over; the time has changed and the tables have turned and, as such, LRA is going to work very hard. Jallah emphasized the importance of maximizing revenue collection, especially in light of the country’s modest budgetary allocations.

He disclosed that significant amounts of revenue are lost due to tax evasion and illicit activities within the business sector.

Jallah pledged to crack down on such practices, warning tax evaders that Liberia will not tolerate illegal activities aimed at avoiding financial obligations to the state.

“We are going to the bottom of all those things and those that are illegitimate and legal, while admonishing the tax practitioners that they will have a lot of jobs on hand because we will bill them for all the lost revenues,” he said.

“We will ensure that you pay the money that you were supposed to pay. If you think that you can bribe somebody illegally and get quotations, forget. Just start packing it together because Liberia will get that money; the one billion that we talk about.”

Addressing systemic issues such as duty waivers and tax exemptions, Jallah proposed policy changes to promote fairness and transparency in financial transactions.

He suggested that government agencies should plan their budgets based on duty-paid prices, thereby eliminating opportunities for exploitation and revenue loss. Jallah also used the occasion to warn business owners to stop inviting him for dinner because he is “a different guy” and will ensure that what belongs to the government is collected rightfully.

“When was the last time you ever invited me for dinner? Or because you heard that I am the new LRA boss? Please stop it. I don’t need anything from you besides our lawful revenue that belongs to the government,” he warned.

Jallah reaffirmed his commitment to achieving the ambitious revenue target, stressing the need for collective effort and policy reforms to ensure sustainable economic growth and development for Liberia.

Bong County Senator and chairman of the House’s Ways, Means, and Finance Committee, Prince Moye, assured the LRA boss that under his leadership, the budget discussion will be transparent and ensure that they provide oversight on the expenditure of the budget.

“Those days are gone when line ministries were given allotments that they could not receive,” the Senator said.

“We are going to be robust to ensure that every agency or ministry, the MFDP, will ensure that funding generated and placed in the consolidated account is appropriated accordingly so that every little institution the legislature appropriates money to will have that funding to perform the task they are obligated to,” he added.

Gbarpolu County Senator Amara Konneh also pledged his unwavering commitment to the LRA that, by following every single penny, nickel, and dime spent by government institutions, they will be held accountable under their regime in the House of Senate.

The USAID-LEAD project is dedicated to supporting Liberia’s efforts to strengthen domestic revenue mobilization, promote transparency, and empower local communities through decentralization initiatives aimed at improving service delivery across the nation.

CG Jallah highlighted the pivotal role of the USAID-LEAD project in bolstering the revenue base of Liberia, thereby facilitating sustainable economic growth and development.

In her address at the event, US Chargé d’Affaires Catherine Rodriguez underscored the strategic objective of the five-year LEAD project, which is to assist the government of Liberia in generating revenue in a transparent and accountable manner.

Rodriguez further emphasized the importance of holding individuals accountable for misusing and fraudulently squandering government resources as the nation strives to achieve its ambitious US$1 billion revenue target.

She said that the U.S. remains committed to working with partners to curb waste, enhance transparency, and strengthen revenue mobilization, aimed at fostering sustainable development and prosperity for all Liberians.

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