House Considers 17-year Tax Cut Deal for Cement, Steel Factory

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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).”

The Joint Committee on Investment and Concession and Lands, Mines and Energy, chaired by Grand Gedeh District #1 Rep. Zoe E. Pennue, is analyzing the Tax Cut Deal and will report to plenary in two weeks

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.

Author

  • I am a Liberian journalist, born November 7 and hailed from the Southeast and of the kru tribe. I began contributing to the Daily Observer 2008 and was fully employed in 2012. I am the 3rd of eight children and named after my great grandfather. Am happily married with three children (girls). I am a full member of the Press Union of Liberia (PUL) and also the Sports Writers Association of Liberia (SWAL) and the Legislative Press Pool (LEGISPOL). I can be contacted through email: [email protected] or cell number/WhatsApp: (+231) 0886585875 or Facebook.

5 COMMENTS

  1. A 70 million hotel get a 30 year tax break. Why must a more than 200 million steel and cement company get only a mere 17 year tax break? I don’t get it.

  2. Be watchful of these 11th hr. deal as this rogue gov’t is on its way out. Please don’t saddle the new incoming gov’t with bad deals. Have the courtesy to give any incoming gov’t the room to discern.

  3. Ellen and legislators pocket bonanza compensation packages, cry about budget shortfalls ref security preparedness for a contentious election, and yet make tax giveaways: are they serious or just jokesters? O Jesus, I get it! With a predominantly poor pliant populace, these leeches can even get away with murder. That’s call “relative peace”.

  4. If our so-called partners in progress are not ready to do business in Liberia then they should stay away from our country. Taxes are a major source of revenue for the development any country and it’s people. In the developed world, including Chinese, government depends on taxes to function and develop their economies. If tax waiver opportunity is the only reason for our partners to come to do business in Liberia then we don’t want to do business with them.

  5. It will do us well if we, as a people, postpone all these 11th hour agreements to the next government. This government can not just be trusted in the midst of its desperation to steal rather then create wealth for ordinary Liberians.

    If we don’t want to go down the same road as the 66 bad or bogus concessions, let’s postpone it. This regime is out for stealing and should not be trusted.

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