By Bill W. Cooper
Montserrado County Senator Saah Joseph has formally written the Liberian Senate, urging immediate action against companies that are failing to honour their tax incentive agreements with the government.
Sen. Joseph, in his letter also highlighted the critical need for accountability and transparency in the management of tax incentives, which are designed to stimulate economic growth and attract foreign investment.
Tax incentives are a crucial tool used by governments worldwide to attract investment, create jobs, and stimulate economic growth, with Liberia being no exception.
In Liberia, these incentives have been particularly important in the wake of the civil wars that devastated the country’s economy, thus breaking down every sector.
The government, in a post-war era, has entered into various agreements with both local and foreign companies, offering tax breaks and other benefits in exchange for investment in key sectors such as mining, agriculture, and infrastructure.
However, the effectiveness of these agreements has come under scrutiny as several companies have reportedly failed to meet their obligations, as the non-compliance has not only affected government revenue but also undermined public trust in the government’s ability to manage economic policy effectively.
In his letter to the Senate over the weekend, Sen. Joseph said, “I write to bring to your attention happenings within our country. The breach of tax incentive agreements by some companies are now becoming alarming.”
“Because when the government introduced tax incentive programs, the objective was clear to attract investments, boost economic growth, and create meaningful job opportunities for our people.
These incentives were a promise, a commitment to investors that if they chose to believe in our country’s potential, we would support them but recent events have shown a disturbing trend,” he said.
According to him, some companies, after benefiting from these incentives, have failed to fulfil their end of the agreement, coupled with sidestepping their responsibilities, undermining the spirit of partnership which these agreements were built upon.
This, the Senator noted, that said betrayal not only hurts the economy but also jeopardizes the livelihoods of countless citizens who would have benefited from the jobs and opportunities these investments were meant to create.
He explained, “And it will interest you to note that in response, the government has begun refusing to honour agreements with other investors-many of whom remain compliant and committed to our nation’s progress.”
“This blanket approach is not only unfair but also counterproductive. It risks damaging our reputation as a reliable destination for investment and, more critically, stalls the creation of much-needed job opportunities for our youth and workforce,” the Montserrado County Senator explained.
Meanwhile, Sen. Joseph has pleaded with his colleagues to reflect on the broader implications of his assertion and to ensure that they hold to account the companies that have violated the tax incentive agreements.
According to him, while addressing the wrongdoers, they must not penalize
compliant investors by refusing to honour legitimate agreements because doing so only discourages future investments and hurts our economic prospects.
The Senator maintained that at the heart of the issue at hand is the impact on Liberians as such, every broken agreement and every missed investment opportunity is a missed chance to lift a family out of poverty, to give a young person their first job, and to strengthen Liberia’s workforce.
He asserted, “This crisis offers us an opportunity to improve. We must strengthen the mechanisms that monitor and enforce tax incentive agreements.”
“We also need transparency, regular reporting, and penalties for
non-compliance to ensure these agreements deliver their intended
benefits.
Because the stakes are too high for us to ignore this matter. The breach of
agreements by a few should not derail our national development
agenda,” he said.
Sen. Joseph added, “So, let’s us act swiftly to restore confidence in our policies, protect the interests of our citizens, and ensure that tax incentives achieve their true purpose: building a stronger, more prosperous nation for all.”