Countries generally tax the forestry sector to achieve the twin objectives of revenue maximization and sustainability of logging levels. In an ideal world of perfect markets and information, auctions would be the best instrument to determine the price of extraction rights. However, a number of factors-including a lack of information on the forest resources under consideration, uncertainties as to the stability of property rights over time, and a lack of access to credit-have limited the use of auctions so far, particularly in low-income countries. To establish transparency of the forestry sector's financial flows, this paper discusses a radical simplification of Liberia's current timber tax structure, including a proposal to reduce the sector's current tax system to two instruments, an area tax and an export tax.
involvement of timbercompanies in violating UN sanctions. 2
To address these issues, the UN Security Council requested in 2002 that the government take steps , including the establishment of a transparent audit regime, to ensure that revenue from timber and other activities would be used for legitimate social, humanitarian, and development purposes. Independent audits sponsored by the European Union (EU) were expected to provide the necessary assurances, but the external auditor hired by the EU withdrew from the audit in late 2002, and the government of Liberia hired a
the sale of the Bruynzeel Suriname TimberCompany (BSH) is being led by a cluster of ministries and is at an advanced stage. The privatization process of the SML is also well advanced and the government expects to conclude negotiations within the next six months.
10. Another key reform concerns the restructuring of the tax administration . With assistance from the IADB and CARTAC and drawing on the Jamaican experience, the Ministry of Finance is working on the creation of a new Tax Authority. The model being envisaged is one in which the revenue authority could
trading in diamonds and the civil war in Sierra Leone in 2001, the Security Council’s panel of experts highlighted in its reports the existence of extra budgetary transactions associated with timber activities and the involvement of timbercompanies in violating UN sanctions. 19
56. To address these issues, the UN Security Council requested in 2002 that the government should take steps , including the establishment of a transparent audit regime, to ensure that revenue from timber and other activities be used for legitimate social, humanitarian, and development
This Selected Issues paper reviews the recent economic developments, production, prices, and employment of Liberia. It also highlights the fiscal, monetary, and external sector developments, and the failures and credibility in the banking system. It describes the role of timber, rice, petroleum, and cement in the Liberian economy. It also provides the details of the IMF’s projections and estimates on Liberia’s summary of the tax system, central government revenue, and economic classification of central government expenditure, summary of accounts of the central bank of Liberia, and deposit money banks during March 2001-September, and so on.
a commercial bank, the following order of priority is set for claims against the bank’s assets: (a) expenses incurred by the liquidation officer; (b) wages of employees of the bank in liquidation; (c) taxes, rates, and deposits owed to the government; (d) fees and assessments due to the central bank; (c) saving deposits; and (f) other deposits.
14 Although a deposit insurance scheme is noted in the Financial Institutions Act of 1999 (Part IV, 34), the CBL has no plans to introduce one.
15 The opening of a new plywood factory by the Oriental Timber
This Selected Issues and Statistical Appendix paper examines recent economic developments and medium-term outlook for Liberia. This paper focuses on economic developments during 2003 and 2004 and the medium-term challenges of reconstruction. The paper explores the pros and cons of adopting full (de jure) dollarization in Liberia. It reviews the theoretical arguments for and against adopting dollarization and the associated empirical evidence. The choices of monetary and exchange rate regimes made by other post-conflict countries are presented. The paper also assesses whether Liberia, in its current post-conflict situation, could benefit from dollarization.
government owned forested land subject to detailed requirements to ensure protection of forestry resources (see table below). Oriental TimberCompany (OTC) currently produces about one half of total timber output.
48. The Forestry Development Authority (FDA) was established in November 1976 as the custodian of the forest resources of Liberia, to oversee logging and other activities. It was specifically charged with: bringing about the profitable harvesting of all forest products; ensuring that the supply of such products is perpetuated; and enforcing laws and regulations
foreign trading, mining and timbercompanies.
63 See “Ghana: Statistical Appendix,” SM/99/269; 11/4/99, Table 48.
64 The National Investment Bank (NIB), also created in the mid-1960s dealt with medium-and large-scale agricultural and industrial projects.
65 Includes cotton, groundnuts, oil palm, rubber, and soybean.
66 Includes cashew nuts, coffee, cut flowers, pineapple and vegetables.
67 On average, about 300–400 shareholders for a new bank, and up to about 1,000 shareholders for any RB in existence for 5 years or more.