Liberia—Revenue Generation for Governance and Growth (RG3)

Client: U.S. Agency for International Development

Duration: 2016-2021

Region: Sub-Saharan Africa

Country: Liberia

Solutions: Economic Growth Governance

Enhancing the government of Liberia’s ability to collect taxes from its citizens, known as domestic revenue mobilization (DRM), is a critical part of helping the country meet the long-term development goals laid out in its ambitious Agenda for Transformation. However, tax evasion, poor tax policy, and ineffective enforcement all constrain the government’s ability to raise the funds it needs to provide basic services to citizens and promote economic growth and social development in the country.

The Revenue Generation for Governance and Growth (RG3) project will support the Government of Liberia to confront the challenge of improving its tax collection system and cultivating a sense of accountability among taxpayers. DAI’s approach will holistically address DRM and tax system reforms. We will pair supply-side support to key government ministries, in the form of capacity building to improve policy, efficiency, and enforcement, along with demand-side interventions that increase taxpayer morale through raising awareness of taxation responsibilities, newly simplified payment methods, and the risk of enforcement for noncompliance.

Sample Activities

  • Work with staff across the Ministry of Finance and Development Planning to build capabilities in tax policy design, tax organization structure, and drafting of tax-related legislation.

  • Facilitate the meeting of stakeholders from the private sector, civil society, and government to develop a “fiscal pact” that makes the social contract of taxation explicit and tangible.

  • Support the Government of Liberia in development and roll-out of education and awareness campaigns through outreach tools such as billboards, paintings, and radio ads.

  • Support the establishment and operationalization of a toll-free call center to handle taxpayer questions in a customer service-oriented manner and route complaints appropriately.

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