Revenue Generation for Governance and Growth (RG3) Liberia

The purpose of the project is to increase the capacity of targeted government institutions of Liberia, particularly the Ministry of Finance and Development Planning (MFDP) and the Liberia Revenue Authority (LRA) to improve domestic revenue mobilization in the country.

The project led by DAI International is focused on supporting the MFDP to develop the capacity to formulate sound, predictable, and fair revenue policies. In addition, it also seeks to support the LRA to enhance its ability to effectively, efficiently, and transparently implement those policies and carry out its revenue collection mandate.

The project will also involve collaboration with the Government, private sector, and civil society to strengthen dialogues, and to raise awareness and engagement about taxes and their benefits with an aim to build tax morale, increase voluntary compliance, and foster greater trust between taxpayers and the Government.

PMCG is working with the MFDP and LRA to create a policy environment that is predictable, transparent, fair and conducive to improved revenue mobilization.

In this regard, PMCG will conduct the following activities:

• Assist MFDP and LRA to enhance revenue forecasting;
• Assist MFDP to review the current tax regime for adequacy and support institutionalization of processes for the development and drafting of laws and regulations where appropriate;
• Support analysis, consultation, and advocacy toward the introduction of VAT and the planning, coordination, and execution of VAT implementation;
• Assist MFDP and LRA in the preparation of specialized analysis, including tax expenditure analysis, impact analysis and data analysis;
• Increase the capacity of MFDP and LRA to review, analyze, and provide recommendations on the fiscal terms of concessions and other investment agreements.

In addition, PMCG will support the LRA to improve the efficiency, integrity, and transparency of revenue administration via the following specific activities:

• Assist the LRA to expand taxpayer registration, including that of individuals (non-corporate taxpayers);
• Support planning and roll out of tax and customs “e-services,” such as e-filing, e-payment, and mobile money, with an aim to reduce compliance burdens and improve revenue collection;
• Assist LRA leadership and build Professional Ethics Department (PED) capacity to institute a strategy, controls, and measures to promote ethical conduct, to investigate and address misconduct, and to improve LRA staff integrity;
• Assist the LRA to develop and roll out competency-based tax and customs training programs, including in taxpayer services, tax audit, collections/debt management, IT, management, and other areas;
• Assist the LRA, BOTA, and the judiciary, as appropriate, to develop capacity to objectively, transparently, and efficiently manage objections and appeals as well as cases referred to the Liberian courts;
• Support the LRA in the development and implementation of a communications strategy, including informational guides, FAQs, and other user-friendly materials to educate and guide the public on tax issues.