Liberia is preparing to transition to a modern Value Added Tax (VAT) system, with the Liberia Revenue Authority (LRA) and the Ministry of Finance and Development Planning (MFDP) launching a nationwide VAT awareness campaign.
The initiative, officially unveiled at LRA headquarters in Paynesville, aims to educate citizens, businesses, and local communities ahead of VAT implementation on January 1, 2027.
Minister of Finance and Development Planning, Augustine Kpehe Ngafuan, described the launch as a critical step toward strengthening Liberia’s domestic revenue base. “A national budget is only as credible as the revenue collected to fund it,” Ngafuan said, praising the LRA’s record performance in 2024 and 2025 and expressing confidence that Liberia could surpass one billion U.S. dollars in revenue collection for the first time.
Ngafuan emphasized the need to reduce revenue leakages and enhance fiscal sovereignty as overseas development assistance continues to decline. “VAT is an investment in our nation’s future,” he said, urging citizens to embrace the reform while calling on the LRA to ensure that awareness efforts reach every community nationwide.
LRA Commissioner General James Dorbor Jallah described the launch as a defining moment in Liberia’s fiscal transformation. He clarified that VAT will replace the existing Goods and Services Tax, aligning Liberia with more than 170 countries worldwide that utilize VAT as a transparent and efficient consumption tax. “VAT is not intended to punish businesses or citizens. It promotes fairness, accountability, and growth in tax administration,” Jallah said, highlighting its potential to broaden the tax base, reduce cascading taxation, and enhance revenue collection efficiency.
The awareness campaign will include stakeholder consultations, sector-specific workshops, training programs, and public education initiatives across multiple platforms. Commissioner for Domestic Taxes Margaret Krote assured the business community that the LRA would provide guidance, training, and practical tools to facilitate compliance.
Legislative and development partners have pledged support. The Legislature Budget Office emphasized the importance of public education for successful implementation, while the European Union and African Development Bank welcomed the initiative as a strategic step toward fiscal resilience.
The African Development Bank recently approved an $18.3 million financing package to strengthen Liberia’s revenue administration and governance systems.
Professional bodies, including the Liberia Institute of Tax Practitioners and customs brokers, have also pledged cooperation to ensure taxpayers are prepared for the transition.
The VAT awareness campaign will begin in Montserrado County and expand to all fifteen counties, targeting businesses, civil society organizations, local leaders, and the general public.
The LRA emphasized that VAT must serve development and, in turn, serve the people, highlighting a commitment to transparency, partnership, and effective engagement throughout the transition.
