Return Of Hut Tax

Tuesday, 10 July 2012 19:59

Written by Boima J. V. Boima

The re-introduction of the ‘hut tax’ in Liberia, abolished since 1980, would “exacerbate poverty and “instigate violence” in the country, Dr. Togba-Nah Tipoteh, chairman of the Steering Committee of Vision 2030, warned here Monday.
“The hut tax must not be reintroduced because of the injustices and cruelty that was associated with its collection, partially forming a pretext to civil war and violence in this country.
“So now, to re-introduce this (hut tax), is to provide a pretext for violence because of the unjust treatment of people. The collection of the hut tax has with it the brutalization of people by security forces; they beat them up and tied them up. This is the history we have,” Dr. Tipoteh recalled.
His reaction follows reports that Finance Minister Amara Konneh recently informed a forum of traditional chiefs that the government would “start collecting taxes on our houses” better known to rural dwellers as ‘hut tax.’
Mr. Konneh encouraged the chiefs to sensitize their people in the collection process, which would bring about more developments and address some of their needs.
But, in an interview with the New Democrat Monday, Dr. Tipoteh, successfully campaigned against the ‘hut tax’, which was abolished in 1980, said re-introducing its collection would worsen the condition of poor people who already have nothing.
He said the statement signals that government is “not serious about the reduction of poverty in the country.”
“People have no money. They are already poor… then you make the situation worse. They barely have food to survive; they don’t have income to be able to take care of their children’s school fees, medical bills…then you go and deprive them of their survival,” he explained.
“The other part is that you are trying to get water out of rock. It (hut tax collection) would completely erode the poverty reduction efforts of the government. Because, the bulk of the poor people are subsistence farmers, and this sends the notice that the government is not serious about poverty reduction,” Dr. Tipoteh argued.
He cited that if government can waive income taxes for its employees earning $100 and below as a strategy to reduce poverty, why would it decide to tax people who have no income at all.
He advised that government should focus on “progressive taxation which compels rich people to pay higher taxes” rather than the “regressive” method, which compels the poor including traditional chiefs in the country to pay what they do not have, thus marginalizing them.
Dr. Tipoteh added: “Reintroducing the ‘hut tax’ would lead the people not to have confidence in a system that would make them poorer. They can be de-marginalized by participating in national decision-making. They cannot be de-marginalized by making them poorer.”