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| Finance Minister Amara Konneh |
Tracing A Bad Law
Just a fortnight ago, Liberia’s Finance Minister Amara Konneh received an award for Best Finance in Sub-Saharan Africa. That singular award places Mr. Konneh in nearly the same boat with his boss, President Ellen Johnson Sirleaf. By any standard, they should be among the best Liberians to walk the face of earth. But are they?
Those two laureates have one thing in common – “wicked and insensitive”. It is understandable that Amara Konneh would carbon copy his boss, who prides herself in sheer wickedness and gross insensitivity, to place self-interest and parochial policy above the general good of the people they should be serving. Let’s look at Amara Konneh’s latest diabolical assault on the downtrodden and struggling people of Liberia residing in and outside of the country.
On October 14, 2013, Finance Minister Konneh ordered the enforcement of a draconian finance and revenue law that was suspended more than six years ago. Titled “Administrative Regulation”, the Finance Minister signed and ordered into effect a “Punitive Tax on Used Vehicles”. Under this regulation, there is no distinction between Liberians importing used vehicles and aliens’ bringing in used vehicles. In the actual sense of the regulation, the government of Liberia, by and thru the Ministry of Finance, is treating aliens and citizens the same way when it comes to importing used vehicles. From the look of the regulation, it seems the government is so fair to deal with aliens as it deals with its own citizens. But for those of us who have traveled widely, we are aware that never in any country, except Liberia, that financial and economic decisions are made to compare aliens and citizens.
Section 14247 of the Revenue Code of Liberia authorizes the Minister [of Finance] to make regulations for the purpose of carrying into effect any of provisions of the Revenue Code. And after a period a devastating years of war, the Finance Minister Konneh decided he would enforce a rather problematic law that has been relaxed since the demise of the Samuel Doe regime.
The law states, “This regulation is in pursuant to Section 14263 b (2) of the Revenue Code of Liberia Act of 2000 amended in 2011 which states that there shall be no importation of used motor vehicles more than ten years old, whether intended for transport of passenger or goods, or for private or commercial use.”
In effecting the law, the Ministry states that the purpose of the Administrative Regulation is to “levy punitive tax on the importation of vehicles”. One wonders the intent of the government of Liberia enforcing a punitive law that does not look beyond parochial reasoning. That is why many think it is not just a bad revenue code, it is also very insane to realize that our government thinks it has everything under control that only new vehicles should be imported. Here are some of the reasons why the law is bad.
Pleasing foreign business people
This punitive revenue code has its genesis, I am told, back in the Tolbert regime. In fact, the past Tolbert regime had 25% punitive tax on used vehicles. According to my information, and I welcome contrary facts, this law was promulgated after Lebanese and Indian traders complained to the government that the importation of used vehicles were destroying their businesses, since they were the ones “paying the huge taxes”. You will realize that these Lebanese and Indian traders sell their vehicles very expensive for the common man. The regime granted their wish and passed the law. In the same manner, my information of late says some business people met with the Finance Ministry officials and complained that the used vehicles were destroying their businesses by the way they were priced. It was based on that the Finance Minister decided to enforce this draconian law.
Disregard to Liberians’ efforts
On another point, come to think of it…the Liberian economy plummeted drastically due to the long years of war. Besides, the government is paying civil servants less than $130 per month. How does our government think these people will ever afford new vehicles? Most Liberians who bring vehicles from Asia, Europe and the United States are simply aiding the growth that we so dearly need for our country’s economy. This also helps the ordinary man to buy a vehicle. There are several factors the government should have considered before enforcing such a bad law. For instance, Liberians residing in the diaspora want to return. When they do so, they bring along their old vehicles to use. For the Finance Minister, you must be punished by your decision to returned with you vehicle. Assuming but not admitting, what makes it bad even if a Liberian brings in a 20-year old vehicle and sold it cheap to a struggling civil servant? The Ministry should put in place a mechanism to ensure that this law does not affect Liberians who are doing everything within their means to give a boost to their country’s economic salvation. If this law was intended for foreign business people, then Liberians should not be punished by their own government.
Making choice of what we cannot produce
What the government of Liberia has failed to realized is that countries that prescribe certain kind of vehicles, their make and age are those that manufacture vehicles. Liberia cannot even make a bicycle and she is restricting the importation of old vehicles. Most interestingly, old vehicles in the United States or Europe are better in terms of body and engine longevity. This the Finance Minister knows very well. When he was living in the US he could not even afford a new vehicle, without paying car notes that span over 30-60 months. Why are these people behaving like hypocrites?
Having said that, in the part two of this article, you will be informed how does the government punish us and how much percent charge is levied on vehicle ten years or older. You will be amazed to note that the Finance Minister is administering his office without us in mind. Also with the part two, I will publish the punitive law that is dragging hundreds of Liberians into the mud.
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