The House of Representatives has accepted four out of six proposals by President Ellen Johnson Sirleaf to amend the Revenue Code of Liberia Act of 2000 in accordance with the Economic stimulus Tax Amendment Act of 2016.
In its report to Plenary on Tuesday, the House Specialized Technical Committee, following scrutiny of the Act, maintained that Excise Tax at the rate of 80 percent shall be levied on tobacco and products containing tobacco.
The committee also stated in its report that tax be imposed on taxable income from activities describe in the Revenue Code, as well as for income of legal persons that derive more than 30 percent of their income from life insurance, among others.
The committee also maintained the proposition calling for Incentives for New Investment in which qualifying activity is entitled to the special tax incentive as contained in the code.
Although the amendments of the Act was endorse in totality, the House rejected two of the six proposals which include the proposition calling for the increment of Excise Taxes on alcoholic beverages, water, soft drinks and mobile telephone usage.
The House also maintained that 1708e of the Revenue Code of Liberia Act of 2000 be inserted under the caption “Special Rules for Legislators and Justices of the Supreme Court and reads: “A member of the Legislature and Justice of the Supreme Court is allow an exemption for import duties and fees on two vehicles per calendar year.”
According to the committee, the considered propositions will raise more than US$21 million to support the 2016/2017 budget, while the government will be denied more than US$9.1 million as the result of the two that were rejected.