The plenary of the House of Representatives during its 36th day sitting of the 4th session has passed two key bills into law, pending concurrence by the Liberian Senate.
The House’s plenary took the decision on Tuesday, June 1, 2021, followed by reports from the joint Committee on Ways, Means, Finance and Development Planning, the Public Account and the Judiciary.
The two bills passed into law by the House of Representatives are, “The Convention on Mutual Administrative Assistance in Tax Matter”, and “The Liberia Electricity Sector Strengthening and Access Project using the Multi-Phrase Programmatic Approach”.
The Financing Agreement signed between the government and the International Development Association is expected to last for a period of little over 38 years, and the repayment plan is broken down into segments. The cost of the financing agreement is put at US$54.5 million.
US$29 million goes into non-concessional financing, US$10.5 million as special drawing rights (Grant), and US$15 million goes into concessional financing. The effective date of this payment is 90 days after the signature date.
The non-concession part of the financing shall run for 20 years, beginning 2031, and up to 2050. The payment shall be made twice a year on February 15 and August 15. Payment shall commerce on August 15, 2027 and end on February 15, 2059. Each payment shall be 1.5625%.
Another instrument passed by the plenary of the House of Representatives based on the joint committee report and recommendation is “The Convention on the Mutual Administrative Assistance in Tax Matters between the Bahamas, Canada, and the Republic of Paraguay and the Republic of Liberia”.
The convention seeks to target the provision of administrative assistance to parties to the convention in tax matter, and that such assistance may involve where appropriate measures taken by Judiciary bodies, and such assistance shall also comprise exchange of information, including simultaneous tax examination and participation in tax examination abroad, assistance in recovery, including measures of conservancy, and services of document.
Meanwhile, the plenary of the House of Representatives, with a unanimous decision, has returned to committee room another financing agreement under the caption, “Recovery of Economic Activity for Liberian Informal Sector Empowerment Project”.
During the argument on the floor, many of the lawmakers wondered who might be the targeted beneficiaries, and how could businesses of the informal sectors be identified. Another lawmaker disclosed that it is better for the law to be precise in order to avoid the repeat of the failure of the COVID stimulus package, because majority of the Liberian citizens did not benefit.
The lawmakers observed that due diligence was not done by the Joint Committee on Ways, Means, Finance and Development Planning, the Public Account and the Judiciary.