Members of the House of Representatives are reviewing a new draft law to put royalties on iron ore, gold, and other base metals (non-Concessional); as well as Withholding taxes on gaming and betting, withholding on services rendered, among others.
The House began probing the bill Wednesday, entitled: "An Act to Amend the Liberia Consolidated Revenue Code as Amended to be known as the Liberia Tax Amendment Act of 2024."
The House's Plenary unanimously voted for the Committee on Ways, Means, Finance and Development Planning to investigate and report to the August Body in 24 hours - meaning Thursday, 12 September, because of the downturn in the prevailing economic conditions of the country which prompted the proposal to amend the Revenue Code of Liberia.
According to the new draft law, following the passage of this Act, Sections 704(a)(1), 704(a)(2), Section 806(c) and Section 806(e) respectively will be amended. The law will define royalty as a due and payable to the Government of Liberia at the time of each shipment and in the amount of the stated percent of the valued commercially shipped mineral, regardless of whether the shipment is a sale or other disposition:
Accordingly, there will be 5% royalties on Iron ore; 5% on gold and other base metals; and there will be Tax Withholding on Payments to Nonresidents:
Also, for Gaming Winnings, a payer who makes a payment to a nonresident of winnings from gaming within Liberia is required to withhold tax at a rate of 30 percent of the amount of the payment as well as a payer who makes a payment to a nonresident for Liberian-source services rendered is required to withhold tax at the rate of 20 percent of the amount of the payment if payment is of a sort that, if made to a resident, would be includible in gross income under Section 201 (including Board fees, management fees, commissions, and the like) among others.
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These royalties are expected to raise about US$8 million, aimed to improve the economic conditions and support the recast budget.
The House's hurried probe of "An Act to Amend the Liberia Consolidated Revenue Code as Amended to be known as the Liberia Tax Amendment Act of 2024" prompted a communication from President Joseph N. Boakai, Sr.
"I am pleased to submit to your Honorable Body for enactment: An Act to Amend the Liberia Consolidated Revenue Code as Amended to be known as the Liberia Tax Amendment Act of 2024.
Our mid-year revenue performance review showed that revenue estimates have decreased by US$17.3 million. This has resulted in a downturn in the prevailing economic conditions, thereby prompting this proposal to amend the Revenue Code of Liberia," President Boakai wrote.
The President added: "This amendment is expected to affect Sections on royalties on iron ore, gold, and other base metals (non-Concessional); Withholding taxes on gaming winnings and betting; withholding on services rendered; among others. Hon. Speaker, as this amendment is crucial to offsetting the deficit in our revenue performance, I urge the Legislature to enact this amendment into law."
