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these duty free privileges. Also religious groups and the
diplomatic corps have been granted these privileges. However,
foreign businessmen constitute by far the largest and most
important group. It should be taken in account that the level of
import duties in Liberia can be said to be generally low (see
Annex 22).
When looking at other revenue performers it might at first sight
be concluded that improvements in tax collection are being made.
The revenues reported for the years 1963 through 1978 are
presented in Table 39• Taxes on domestic production, consumption
and transactions show the highest growth rate during this period.
Revenues from this source increased from an estimated figure of
$ 0.6 million in 1963 to nearly $ 18 million in 1978 (or a 2000%
increase). The Government's revenue from this source suffers
from a general complaint, at least has done so until recently.
The Ministry of Finance could not verify the production of the
companies because of the shortage of qualified manpower. A recent
effort to reduce the tax evasion resulting from this absence of
supervision and control still has to prove successful. Excise tax
officers were stationed in eleven companies to keep record of the
companies' activities (54)- Though their number was necessarily
limited the employment of these excise tax officers may in the
long run contribute to an improvement of the taxpayers ' behaviour.
Excise taxes on domestic production formed the major component
of taxes on domestic production, consumption and transactions
until 1976.
There are about 40 companies in the country contributing excise
taxes. The largest in this category, the foreign-owned Liberia
Refining Company, was responsible for withholding excise taxes
from its customers but total collection has in general been low.
The main reason is that the company does not have many tax
paying customers. About 90% of its customers are exempt from
excise taxes either by law or by concession agreement. The
excise tax on petroleum products is extremely low in Liberia
(ranging from 9% to 12% only) which further limits the revenues
derived from this source. The fact that many exemptees abuse
their privileges by buying for resale to others who do not
qualify for exemption also keeps revenues from this source
unnecessarily low.
The second largest tax payer in this category is another foreignowned
company, the Monrovia Breweries Inc., operating since 1962
in Liberia. However, also in this case excise tax has from the
start been very low. Rates were increased from 13 cents to 53
cent.s per liter in 1977 when tariffs in Liberia and
neighbouring Sierra Leone were harmonized within the framework
of the Mano River Union (55). By the end of 19 79, however,
Liberia had not yet implemented this decision because of the
failure of the National Legislature to approve the decision (56).
Another source of revenues which increased in importance
consists of Taxes on Income and Profits. About 40 companies pay
Corporate and/or Partnership Income Taxes but also in this