Rep. Koung Says Ways, Means, and Finance Committee Rejects Tax Increases

GANTA, Nimba – Rep. Jeremiah Koung of Nimba’s first district has disclosed that the House Committee on Ways, Means and Finance has rejected a request from the executive branch to abolish a popular promotion used by telecommunications companies.

Included in the request was also an appeal to impose an assortment of taxes meant to generate more revenue for the government.

Telecommunications companies such as Cellcom and Lonestar offer the promotions where subscribers pay US$1 for three days of texting and calling on their respective networks.

The request from the executive branch asked for a ban on the three-day call promotion and the imposition of a one-cent charge on all calls made by subscribers.

The idea of a ban on the promotions seems to have originated from Lonestar’s board chair and presidential aspirant, Benoni Urey, who in a letter to President Ellen Johnson Sirleaf earlier this year, asked for the president’s intervention in the “uncontrolled competitive price wars.” He argued that the government and the telecommunications companies are losing revenues as a result of the competition over promotions that are not profitable.

While the letter has not been independently substantiated by The Bush Chicken, representatives of Lonestar have been supporting its sentiments on social media and on the radio.

The bid to ban these promotions was not the only request in the communication to the House committee. There were also requests to increase the taxes on alcohol, tobacco, mineral water, and soft drinks.

Koung, who co-chairs the committee, said it would not be in the interest of ordinary people to ban the promotions as they were beneficial to Liberians, especially those working in the health sector.

“Let me tell you something, I was talking to the administrator of [my E & J Medical Center in Ganta] and he told me that the free call is really helping,” Koung said, using a misnomer to refer to the promotions, which actually do cost money. “Overnight, when women are in pain, and there is no one in the house that got money on the phone, you can go and use somebody’s three-day free call. They can make a call, and ambulance can go for them.”

He continued, “To do that – to abolish that – I would think the [maternal death rate] will increase because there will be lots of disaster around here. I can assure you that if this bill comes on the floor, you will not get my vote for that.”

Koung said the committee also did not see the importance of increasing taxes on soft drinks, mineral water and adding a one-cent tax on all calls.

However, the lawmaker considered increasing the tax on alcohol and tobacco products more palatable.

Regarding a proposed tax on tobacco products, he said, “I would even want it to be increased by 1,000 percent because if you will smoke to kill yourself, then you need to pay the money for it – those are luxury things for people.”

Koung said the committee rejected the request and was awaiting the executive branch’s resubmittal of a modified request.

“I want it to come this time with another explanation,” he said. “Perhaps the first explanation did not convince me. Maybe this time it will convince me, and when that happens, I will make my decision.”

Featured photo by Arrington Ballah

A resident of Ganta, Nimba County, Arrington has a background working with credit unions and other organizations dedicated to rural finance.

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