NATIONAL NEWS
MONROVIA – Finance and Development Planning Minister Augustine Kpehe Ngafuan has launched a nationwide Value Added Tax awareness campaign, reaffirming the government’s commitment to strengthening domestic resource mobilization as Liberia prepares to implement VAT on January 1, 2027.
Speaking at the launch, Ngafuan commended the Liberia Revenue Authority for achieving record-breaking revenue collections over the past two years.
He said 2024 recorded the highest revenue performance in Liberia’s history, with 2025 building on that achievement.
By: Kabina S. Kabah kabinaskabah98@gmail.com
As the country approaches 2026, he noted that Liberia is on track to cross significant fiscal milestones, including the billion-dollar revenue threshold.
The Minister highlighted the government’s increasing focus on self-reliance, referencing the launch of an 18-million-dollar Domestic Resource Mobilization Project supported by the African Development Bank.
He said the initiative is aimed at strengthening tax administration, closing revenue leakages, enhancing enforcement across institutions, and improving nationwide collection.
Ngafuan described the transition to VAT as central to Liberia’s economic modernization agenda. He acknowledged that major reforms often generate concerns and pledged a comprehensive change-management approach that will extend across all 15 counties.
The strategy, he said, will include public education, stakeholder engagement, and targeted training to ensure taxpayers understand and comply with the new system.
He emphasized that taxpayer registration must be well advanced by mid-2026 in preparation for the implementation date, stressing that the government remains committed to the January 1, 2027 rollout despite global constraints on development financing.
Also speaking at the launch, LRA Commissioner-General James Dorbor Jallah described the awareness campaign as a pivotal moment in Liberia’s fiscal history. He said the transition to VAT represents a modernization of the tax system designed to strengthen transparency, fairness, and domestic resource mobilization.
Jallah explained that VAT, which is used in more than 170 countries worldwide, will broaden Liberia’s tax base, reduce cascading taxes, improve neutrality in business transactions, and provide a more stable and predictable revenue stream to support government services.
He emphasized that essential goods and services affecting vulnerable populations will be zero-rated to protect those most in need.
To ensure a smooth transition, the LRA plans to conduct stakeholder consultations, organize sector-specific workshops, roll out public education campaigns, provide training for accountants and tax practitioners, and upgrade digital infrastructure.
The VAT reform process dates back to 2009, when efforts began to harmonize tax systems among member states of the Economic Community of West African States.
A directive adopted that year led to a Memorandum of Understanding between the ECOWAS Commission and the Government of Liberia, laying the foundation for the country’s VAT framework.
With the implementation date set, government officials say the nationwide awareness campaign marks a significant step toward preparing businesses and citizens for one of Liberia’s most comprehensive tax reforms in decades.
