Deploying the Automated System for Customs Data (ASYCUDA) Computerize System to Enhance Tax Collection at the Liberia Revenue Authority (LRA)
Proposal
Topic:
This paper will look at the manner in which tax is collected by the Government of Liberia (GOL) through the newly established Liberia Revenue Authority (LRA) and the impact on the revenue generating capacity of the and proposes possible solutions. Currently, the LRA is using Automated System for Customs Data (ASYCUDA) computerize system for its tax collection. This is in line with practices adopted by other countries in the sub-region which comprise countries of the Economic Community of West African States (ECOWAS). ASYCUDA was launch in Liberia in July 2009 in order to modernize the tax collection and boast the GOL revenue capacity. However, ASYCUDA has only been launched in Monrovia, where the country has it major port – the Freeport of Monrovia. There has been no significant increase in revenue collection since the launch of the system.
Problem:
The business problem to so is how to make ASYCUDA available to all ports of entry, train the manpower to operate the computerize system and how to keep it operational in handling volume of transactions regularly. Other ports and custom posts in the country are still using the manual system for tax collection. The manual system provides poor customer service and inconvenience for goods clearance. It also exposes government revenue to theft. The deployment of the ASYCUDA computerize system will minimize some of these problems.
Approach:
Determine whether the ASYCUDA computerize system once deployed at all ports of entry and custom posts will increase government revenues, minimize theft and corruption, improve the financial reporting, improve data collection, improve revenue performance reporting and budget forecasting, and provide efficient customer services