The Liberia Revenue Authority (LRA) has signed a partnership agreement with LoneStar Cell MTN, Orange Liberia and the United Bank of Africa (UBA) for the introduction of the payment of tax, using mobile money, for the first time ever in the country. The official exercise starts in November this year, according to a press release.
The Proof of Concept Agreement (PCA) for Mobile Payments, was signed on Thursday, September 7, 2017 in Monrovia and will pave the way for taxpayers to make payment by means of mobile money services. Under the pilot arrangement, the two GSM companies will design accessible payment platforms to facilitate tax payment, using mobile money service.
The agreement will cover all tax and non-tax collections, including Cooperate Income Tax, Personal Income Tax, Excise Tax, Goods and Service Tax as well as fees for various licenses and certificates and will eventually cover import duty.
The first phase of the project will cover small tax payments and will more generally benefit small tax payers thereby, facilitating their compliance. The second phase will cover larger payments.
Commissioner General Elfrieda Stewart Tamba describes the partnership as a “major milestone” under LRA’s Transformation and Modernization Agenda. “Today, we are happy to sign a Proof of Payment Pilot Agreement with Orange and LoneStar to introduce tax payment, i.e. the first P to G (Private to Government) payments in Liberia,” CG Tamba says.
She reaffirms the commitment of the LRA in transforming tax administration in Liberia through the application of aggressive and sustainable technologies, good and efficient service delivery and the facilitation of lawful trade aimed facilitating voluntary tax compliance and strengthening domestic revenue mobilization.
CG Tamba, among others, lauds the telecom partners and the UBA for the partnership and also commends taxpayers of the United States for their support to the LRA through the USAID RG3 Project.
Speaking during the signing ceremony, LoneStar Cell MTN Deputy Chief Executive Officer, Louis Roberts, Orange Chief Executive Officer Mamadou Coulibaly and UBA’s Managing Director Olalekan Balogun respectively pledge their commitments to fully implement the agreement.
They express willingness in supporting the LRA to achieve its tax payment transformation programs.
Representative of USAID-Liberia Democracy and Governance Office, Mr. Jeremy Meadows, praises agency’s commitment to LRA and the Revenue Generation for Governance and Growth (RG3) Project, which supports LRA in its various tax and revenue implementation mechanisms.
The Director notes that the collaboration provides a vital step towards achieving the much-needed government-private partnership. “The RG3 Project while intended to mobilize domestic resources, is also intended to reinforce the social contract trying to increase the ways in which Liberians are connected to their government. They way that Liberians own their government, invest in their government, and contribute to their government. This is going to be one of the most significant ways to broaden that capacity and enhance that language.” Press Release