Senator Francis S. Dopoh of Rivergee County has called upon the Senate to re-characterize the Road User Exemption Permit that has been granted to Bea Mountain Mining Company. In a recent communication directed to the Executive Branch and read during a session of the 55th Legislature on October 29, 2024, Dopoh emphasized the significance of the issue concerning the country’s fiscal integrity and the equitable treatment of all stakeholders in the mining sector. He argues that the current exemptions undermine the principles enshrined in the Liberia Revenue Code and create disparities that are detrimental to fair competition within the industry.
According to Senator Dopoh, the provisions under the First Amendment to the Restated and Amended Mineral Development Agreement that exempt Bea Mountain from Road User Charges contravene the principles of uniformity in taxation outlined in the Liberia Revenue Code. He references sections 17 and 15 of the Code, which advocate for fiscal stabilization and the anti-avoidance rule, emphasizing the necessity for all mining entities to be subject to the same fiscal framework. The Senator outlines that section 13.3(b) articulates the supremacy of the Revenue Code regarding taxation matters, indicating that special exemptions like Bea Mountain’s could lead to financial inequities.
Dopoh expresses concern that the Road User Charges are crucial to funding the maintenance of infrastructure that supports the mining operations in Western Liberia. By allowing Bea Mountain to circumvent these charges, the government not only loses potential revenue but also creates an unbalanced competitive landscape where other companies without similar exemptions are placed at a disadvantage. He points to section 1708 of the Liberia Revenue Code, which prohibits equivalent exemptions on import duties for petroleum products, suggesting a broader commitment to equitable taxation across sectors.
The senator also highlights that the disparate treatment of mining companies fosters an environment of inequality within the industry. He believes that this unfair advantage potentially jeopardizes government efforts to manage resources sustainably and extract maximum economic benefit from the mineral wealth of the nation. Senator Dopoh articulates that the existing imbalance in tax treatment discourages equitable competition and undermines the overall economic development of Liberia.
In light of the above factors, he urges the Senate to officially notify the Executive Branch through the Minister of Finance for the exemption to be re-characterized in accordance with fiscal policies and regulations that govern the nation. He insists that such action should be expedited to take effect before the start of the Fiscal Year 2025. Dopoh envisions a tax structure that provides fairness and encourages a level playing field for all corporations operating in Liberia’s mining sector, which is crucial for fostering healthy competition.
In conclusion, Senator Dopoh called upon his colleagues in the Senate to unite in their commitment to uphold Liberia’s fiscal integrity, ensuring that laws and regulations apply evenly to all business entities. He advocates for systemic reforms that will ensure a sustainable approach to resource management, equitable taxation, and the overall welfare of the country, stressing the importance of creating a business environment that allows all companies to thrive and contribute responsibly to Liberia’s economic landscape.
