The_Open_Door_deel1

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Government Revenues 1941 - 1962
Data with respect to the composition of revenues in the period
before 1963 are presented in Table 30,31-A, and 31-B.
Table 30 clearly shows that in the second half of the 1940 's
income from international trade still formed the main source of
revenues. This situation changed in 1951 with the introduction of
income tax legislation in Liberia and notably with the payment by
Firestone of income taxes in that year. Though the income tax
rate to which Firestone had been subjected (through the 1950
Supplemental Agreement to the Planting Agreement) amounted to
only 12?, the company provided in 1951 half of the Government's
income as a result of the rubber prices which had soared during
the Korea-crisis. Firestone remained the second largest single
source of income for the Liberian Treasury during the 195O's and
until 1963 (after customs duties) with the exception of 1951 and
1955, During these two years income from the rubber company even
exceeded customs revenues.
Income tax payments by individuals and companies other than
Firestone were generally low during this period, except for the
years 1951 and 1952 (Table 31-A). The income tax payers in
these two years were mainly Liberian owners of rubber farms who
benefitted from the high international rubber price. With the
fall in rubber prices in 1953 their income fell and thus affected
Government revenue. The rise in income tax payments in
the early 196O's followed the boom in employment caused by the
construction activities in the country. The Government towards
the end of the 1950's embarked on a large scale construction
programme and the newly arrived foreign concessionaires, notably
LAMCO, employed thousands of workers for the construction of
infrastructural facilities (railroad, port). Government revenue
from sources other than international trade and the Open
Door Policy, i.e. duties, taxes, charges etc. imposed upon
Liberian citizens generally did not exceed 20 percent of total
Government income (Table 31-B),
The income derived under the Open Door Policy on the other hand
constituted an important portion of the Treasury's total income.
The contribution to domestic revenues of the Firestone
Plantation Company, the Liberian Mining Company and the Maritime
Programme are presented in Table 32, The income from these three
sources which averaged 41? of total government revenues in the
1946 - 1963 period could be called impressive were it not for
three observations. First, the relative importance of these three
sources of revenues is over-exaggerated as a result of the poor
performance in collecting domestic taxeSi Secondly, considering
the numerous privileges which both Firestone and Liberia Mining
Company enjoyed this contribution should still only be called
moderate. Thirdly, a narrow revenue-base such as implied in this