By: Archie Boan
Policy analyst Benedict Ayiti d’Almeida II has raised serious concerns over a proposed bill by Representative Anthony F. Williams seeking to exempt income earners below US$500 from personal income tax, describing the proposal as politically attractive but technically unsound.
D’Almeida argues that Liberia’s tax challenge is not excessive taxation of low-income earners, but prolonged failure to enforce existing law. He points to Section 8 of the Revenue Code (2011), which mandates periodic adjustment of tax thresholds to account for inflation. At enactment, the non-taxable threshold of LD$70,000 was worth over US$1,000. Today, inflation and currency depreciation have reduced its value to about US$380–400.
According to d’Almeida, had Section 8 been enforced, the threshold would already exceed LD$150,000–180,000, providing relief without removing taxpayers from the system. “The relief this bill promises already exists in law but was never implemented,” he noted.
He warned that raising the exemption to US$500 without strengthening enforcement would shrink the tax base, encourage under-declaration of income, and reduce domestic revenue, potentially increasing reliance on donor support. In a system with weak compliance, he said, exemptions risk becoming loopholes rather than genuine protection for the poor.
D’Almeida further criticized the Legislature for attempting to amend the law to correct years of oversight failure. “You do not amend the Revenue Code to cover neglect,” he argued. “You enforce the law, restore its real value, and fix compliance.”
He emphasized that sustainable tax reform must prioritize enforcement, oversight, and broad compliance rather than exemptions. “Exemptions without enforcement weaken fiscal credibility,” he said.
As the bill proceeds to public hearing, d’Almeida urged lawmakers to explain why Section 8 was never enforced, how compliance will be improved, and what safeguards exist to prevent abuse. Without clear answers, he warned, the proposal risks trading long-term fiscal stability for short-term political approval.
