Country Report Liberia June 2011

Economic policy: Tariff suspensions on cement and fuel are extended

The government recently issued a new Executive Order, which extends the suspension of import tariffs on cement and fuel with the intention of limiting inflationary pressures. The order is in effect an extension of Executive Order 9, originally introduced in 2007, which recently expired, and removes a protective tariff of US$2 on a 50-kg bag of Portland cement and the same amount on imported fuel. It is aimed at mitigating the impact of rising global prices for food and commodities, including cement, an important input for the country's large reconstruction efforts. The suspension of the tariff will also provide a boost to the 26% state-owned Liberia Cement Corporation (Cemenco), which is an importer as well as a producer of cement, and help it to meet local demand. In the absence of hydropower, diesel is used extensively to power generators by individuals and companies, who will benefit from the suspension of the tariff.

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