When passed into law, Senator Kupee said a tax cut of 10% in the salaries and/or allowances of teachers and health workers throughout the Republic of Liberia will be affected, while teachers and health workers assigned in the rural parts of the country shall benefit a tax cut of 15% in salaries and/or allowances.
Sen. Kupee, Chairman on Senate Committee on Ways, Means, Finance & Budget, noted in a communication to his colleagues that if enacted, the bill will also address several key concerns, such as improving the quality of education and health-care delivery.
He said the Bill will also attract and encourage more qualified teachers and health workers to take assignment and remain in the rural parts of the country and contribute to the dignity and enhancement of motivation amongst teachers and health workers.
“Based on this constitutional imperative and considering that tax cut, as a fiscal policy prescription, increases disposable income, we hereby submit this bill covering teachers and health workers of all educational and health institutions in the Republic of Liberia.”
“This fiscal policy prescription,” he continues, “leaves households with more money; that is, increase in disposable income that drives consumer demand, which accounts for more than half of a total demand.”
The bill is an amendment of an Act to amend Section 200 (a) (3) (A) of “Amendments to the Revenue Code of Liberia Act of 2000, Republic of Liberia” by the Consolidated Tax Amendments Act of 2010.
It may be recalled that the delay in health workers’ pay disbursement throughout the country was brought to the attention of the Senate by Maryland County Senator John Ballout.
Many senators have since blamed the ministries of Health and Social Welfare, and Finance as the two institutions responsible for the delays which ran into months.
The issue prompted some senators to call for the Minister of Finance Amara Konneh to appear before the Plenary and explain reasons for the delays in paying health workers.
With an increase in the construction of many health and educational institutions in the country, especially in the rural areas, many see Senator Kupee’s Bill as timely, and will go a long way to indeed curtail the inflow of teachers and health workers from rural to urban areas.
