LRA reports revenue shortfall

The Liberia Revenue Authority or LRA reports a shortfall of US$5.095 million for March 2018, representing 7.8 percent. The LRA says, gross revenues collected during March 2018 were US$52.283 million and LRD 1.054 billion, respectively with consolidated value at the average realized exchange rate of 130.60LRD/1USD at US$60.355 million, which fell below its monthly target of US$65.449 million by US$5.095 million, an equivalent of 7.8 percent.

In a performance report for the period under review, the LRA notes that total collection for the month in the current fiscal year, when compared to the same period last fiscal year 16/17, show a significant drop in domestic revenue from US$50.604 million to US$40.082 million, an equivalent of US$15.617 million or 31 percent.

According to a release, the drop in domestic revenue in the current period is attributed to LPRC Road Fund, WH on salaries and Wages, import duties on general imports, international GST, excise taxes on alcohol and tobacco and non-remittance of dividends budget support from the National Port Authority.

“Together they account for 100 percent of the total decline. In terms of revenue sources and GFS Structure, domestic revenue account for US$34.987 million, representing 58 percent; while External Resources account for US$25.387 million, representing 42 percent”, the release says.

LRA continues that in terms of the core revenue departments, Domestic Tax Department accounted for US$17.599 million and LRD671.684 million, with consolidated value US$22.745 million, representing 38 percent of the total collection and 65 percent of domestic revenue, while Customs department accounted for US$ 9.316 million and LRD382.538 million, with consolidated value of US$12.242 million, representing 20 percent of the total collection and 35 percent of domestic revenue respectively.

It details that to date, gross revenue collections (July-March 2018) were US$228.952million and LRD 13.160 billion, while the consolidated monthly aggregate value is US$339.726 million.

However, of the total collection, US$11.344M and LRD359.304M were obligations for last fiscal year 16/17 but actualized in the current fiscal year thus, the current collections year to date are US$ 217.607 million and LRD 12.799 billion.

“The consolidated value at the average realized exchange rate of 130.60LRD/1USD is US$325.188 million, which against a target of US$327.488 million, registered a decline of US$2.300 million or 0.71 percent. When compared to the same period of last fiscal year, total revenues contracted by US$ 67.052 million, resulting from US$ 35.190 million decline in domestic revenue and US$ 31.862 million decline in external resources, respectively.”

The consolidated monthly aggregate value, US$155.296 million was realized, representing 48 and 53 percent of total and domestic revenue respectively. On the other hand, Customs Department accounted for US$87.385 million and LRD 6.133 billion. The consolidated monthly aggregate value, US$139.719 million was realized, representing 43 and 47 percent of total and domestic revenue. Total amount on account of External resources realized for the period was US$30.174 million or 9.3 percent of the total collections to date.