In an endeavor to develop a sustainable economic environment and boost the country’s steel and cement industries, the House of Representatives is investigating a 17-year tax cut proposal from President Ellen Johnson Sirleaf.
The tax cut deal is part of an Investment Incentive Agreement with a 17-year agreement term valued at US$200,000. The draft law is entitled: “The Investment Incentive Agreement between the Republic of Liberia and the TIDFORE Investment Company and Liberia Steel and Cement Mining (LICEMCO).”
According to the bill, LICEMCO will develop and operate a steel and cement factory (plant) in accordance with the International Mining Standards & Laws and prudent business practices. In a letter to the House of Representatives, President Sirleaf said the investor under the incentive agreement will completely construct, acquire and install proposed steel plants infrastructure and equipment at the facility (plant).
The President also said if the Legislature ratifies the 17-year tax cut proposal of LICEMCO it will “provide for safety procedures, create jobs at all levels, cause the investor to enhance its corporate social responsibilities, generate needed revenue for the country and promote economic development and sustainability.”
“This Investment Incentive Agreement is in line with Liberia’s relevant laws and public policy to complement the development plan of the mining and steel sector of Liberia.”
The President further said: “As government commits to creating jobs and a sustainable economic environment, the passage of Law of this Investment Incentive Agreement will demonstrate Liberia’s commitment and implementation in that endeavor.”
The Joint Committee on Investment and Concession and Lands, Mines and Energy is analyzing the Tax Cut Deal and will report to plenary in two weeks. Grand Gedeh County District #1 Representative Zoe E. Pennue and Nimba County District #9 Representative R. Matenokay Tingban are the chairman and co-chairman of the Joint Committee, respectively.