Supporting Effective Tax Payment (LR0050)
Overview
At-a-Glance
Action Plan: Liberia Action Plan 2024-2026
Action Plan Cycle: 2024
Status:
Institutions
Lead Institution: LIBERIA REVENUE AUTHORITY (LRA)
Support Institution(s): Government: LRA-Lead Ministry of Finance and Development Planning (MFDP); The Judiciary; Ministry of Commerce and Industries (MOCI); Ministry of Information, Culture Affairs and Tourism (MICAT); Public Procurement and Concession Commission (PPCC) Civil Society: Accountability Lab Liberia (A-Lab); Center for Transparency and Accountability in Liberia (CENTAL); NAYMOTE Partners; Integrity Watch Liberia
Policy Areas
Fiscal Openness, TaxIRM Review
IRM Report: Pending IRM Review
Early Results: Pending IRM Review
Design i
Verifiable: Pending IRM Review
Relevant to OGP Values: Pending IRM Review
Ambition (see definition): Pending IRM Review
Implementation i
Completion: Pending IRM Review
Description
The Liberia Revenue Authority (LRA) aims to effectively administer and enforce the country's revenue laws with integrity and transparency. A major challenge is the lack of tailored educational information about taxation. While the LRA does provide information, it is often too broad and may not sufficiently address specific tax matters in details. Taxpayers need simplified and educational content to fully understand taxation issues and improve compliance. The existing gap in public knowledge about tax processes is one problem the LRA must solve to meet its mission of professional and transparent revenue administration
3. What problem does the commitment aim to address?
The Liberia Revenue Authority is tasked to raise annual revenue from its citizens residents, and investors throughout the country. A major challenge is the lack of tailored educational information about taxation. While the LRA does provide information, it is often too broad and may not sufficiently address specific tax matters in details. Taxpayers need simplified and educational content to fully understand taxation issues and improve compliance. This is an ongoing revenue generation challenge and more practical solutions are being sought
4. What are the causes of the problem?
One of the major problems is poor tac education for citizens and residents throughout the country. Citizens that able to work do not see task payment as a responsibility rather as a burden. This is because of entrenched corruption of tax payers’ money within the public sector. This has caused tax payment fatigue amongst citizens. Additionally, the payment processes have been stressful for many citizens who might stay in long que for almost a day or two and might be met with a condition such as computer system shot down. All of this hurt tax payment; hence, an online tax payment system has been developed. In addition to addressing the problem, the LRA commits to launching Tax Talk, a digital information dissemination program. This initiative will consist of 3–5-minute video productions designed to provide clear, simple, and educational content on key taxation topics. These videos will be shared widely on social media platforms like YouTube, Facebook, and X (formerly Twitter), as well as on the LRA's internal TV platforms for visiting taxpayers. The Tax Talk series will promote proactive disclosure as required under the Freedom of Information Act of 2010 and will focus on explaining tax payment processes, the role of the LRA, and how taxes are used.
4. What solution are you proposing?
Through proactive communication, Tax Talk will help taxpayers, and the general public make informed decisions. Taxation language can be technical and complex, but Tax Talk will break down tax jargon and procedures into simple, everyday language. This will not only improve understanding but also foster greater tax compliance by demystifying processes and preventing potential fear or extortion from dishonest individuals. By addressing the information deficit, Tax Talk aims to combat misinformation and disinformation, ensuring taxpayers receive accurate and helpful information.
5. What results do we want to achieve by implementing this commitment?
Tax Talk will strengthen transparency, accountability, and public confidence in the taxation system by making critical information accessible. Empowering citizens with knowledge aligns with the principles of the OGP, which emphasizes openness and informed citizen participation in governance. Tax Talk will enhance public trust by demystifying tax processes and improving communication between the LRA and the public.
4. How will the commitment promote transparency?
Empowering citizens with knowledge aligns with the principles of the OGP, which emphasizes openness and informed citizen participation in governance. Closing the feedback loop mechanism will be created to continuously incorporate citizens voices in tax administration. Tax Talk will enhance public trust by demystifying tax processes and improving communication between the public and LRA.
5. How will the commitment help foster accountability?
Revenue generated by LRA are normally published for public consumption. This can be disaggregated by counties and sectors. There is a whistle blowing protection to further strengthen accountability.
6. How will the commitment improve citizen participation in defining, implementing, and monitoring solutions? Closing the feedback loop mechanism will be created to continuously incorporate citizens voices in tax administration. Citizens, however, are consulted and engaged for their inclusion throughout the fiscal year
Commiment Planning
Milestones
Publishing a quarterly Business tax report
Launch Tax Talk, a digital information dissemination platform
Expected Outputs
# of business tax report published
# of citizens engagement on platform
# of tax information disseminated