An opposition politician has called on the government of Liberia to reduce taxes so as to help ease trade and investment activities in the country.
Mr. Alexander B. Cummings, leader of the opposition political party Alternative National Congress (ANC) said the reduction of taxes was key to spurring growth since it provides an outlet through which people have more after-tax income, which increases their purchasing power and provides greater incentives for firms to invest more in the economy.
He said, for instance, civil servants when taxes are reduced, it will provide the opportunity to take home more income and help offset the current inflation rate, which is on its way to four digits.
He also called for government to address the exchange rate disparity between wholesalers and retailers as well as lower the cost of importation of goods and give tax breaks or tax holidays on select items. He did not provide details on which items tax holidays should be given.
Mr. Cummings proposed to the government that it should ensure all requirements for logging are met during the rainy season to allow operations begin at the start of the dry season. “This will increase urgent revenue.” Many logging companies do not operate during rainy season.
In addition to that, he wants government to reduce all non-essential spending to fund short-term growth activities, and immediately investigate all alleged cases of corruption and financial improprieties and forward persons of interest for prosecution.TNR