MONROVIA – Grand Bassa County is at the forefront of Liberia’s daring 50/50 Real Property Tax Sharing Pilot, a scheme designed to keep half of all property tax revenues local and bridge the Monrovia-rural divide. While its promise excites stakeholders, deep-rooted mistrust in government casts doubts on its success.
Launched in Margibi County in 2021 and expanded to Grand Bassa in 2023, the 50/50 scheme embodies Liberia’s move toward fiscal decentralization under the Local Government Act. Residents and local leaders in Buchanan, Grand Bassa’s capital, see the program as a rare opportunity to transform tax revenue into tangible benefits, such as improved roads, healthcare, and education. However, skepticism lingers, stemming from a history of corruption and mismanagement of development funds like the County Social Development Fund (CSDF).
A recent study conducted by the Platform for Dialogue and Peace (P4DP) in collaboration with the Norwegian Institute of International Affairs (NUPI) revealed mixed sentiments among Grand Bassa residents. While most respondents expressed willingness to pay property taxes under the new system, their support was conditional. “Citizens will pay taxes if they see tangible results,” noted a participant in a focus group discussion. “Without transparency and accountability, trust cannot be rebuilt.”
The study highlighted systemic challenges that could derail the initiative. Public services in Grand Bassa, such as its County Service Center (CSC), suffer from underfunding and logistical challenges. For instance, the CSC, hailed as a one-stop hub for government services, receives only half of its $14,000 annual budget and lacks critical equipment. Such gaps feed into broader concerns about the government’s ability to deliver on the promises of the 50/50 system.
Compounding the issue is the centralized implementation of the pilot. The Liberia Revenue Authority (LRA) operates the project from Monrovia, bypassing the local LRA office and exacerbating logistical inefficiencies. Local officials fear that political interference and limited resources will stymie efforts to collect and effectively utilize tax revenues.
Mistrust in governance is further fueled by the history of the CSDF. Originally designed to support local development, the fund has been riddled with allegations of corruption, abandoned projects, and opaque processes. Respondents cited examples of heavy equipment purchased with CSDF funds being rented out for private gain, while roads remain dilapidated and health facilities struggle to provide basic services.
Despite these challenges, the 50/50 model holds promise. Experts argue that it could foster a stronger social contract between the state and its citizens, provided revenues are transparently managed and visibly impact local communities. “This initiative could bring government closer to the people,” said a local business owner. “But only if we see real, immediate changes.”
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