MONROVIA – The Ministry of Finance and Development Planning (MFDP), in collaboration with the Liberia Revenue Authority (LRA), has officially launched the Tax Expenditure Management Act of 2025, describing the legislation as a landmark reform designed to improve transparency, accountability and efficiency in the administration of tax incentives across Liberia.
By Emmanuel Weedee-Conway
Speaking at the launch ceremony, Deputy Minister for Fiscal Affairs, Anthony G. Myers, said the Act represents a major milestone in the government’s efforts to modernize Liberia’s tax system while ensuring that tax incentives contribute meaningfully to national development.
Deputy Minister Myers emphasized that the law provides a comprehensive legal framework for the approval, registration, monitoring, evaluation and reporting of tax expenditures.
According to him, the framework ensures that every tax incentive granted by the government aligns with the country’s development priorities while safeguarding public resources.
He noted that although tax incentives play a critical role in attracting investment, creating jobs, promoting industrialization and stimulating economic growth, they also represent revenue forgone by the government.
Therefore, he stressed that such incentives must be managed with the same level of oversight, transparency, and accountability as public expenditures.
One of the key features of the new legislation is the establishment of Liberia’s first National Tax Expenditure Register—a centralized database that will document all tax incentives and exemptions granted under Liberian law.
The register will identify beneficiaries, record the legal basis for each incentive, estimate the amount of revenue forgone and monitor the performance and duration of approved tax expenditures.
The Act also mandates the publication of an Annual Tax Expenditure Report, which will provide the Legislature, development partners, investors, researchers and the general public with detailed information on the fiscal cost and effectiveness of tax incentives.
Additionally, the legislation introduces mandatory Fiscal Impact Assessments before any new tax incentive can be approved. Under the new framework, applicants must demonstrate the anticipated economic benefits of proposed incentives and justify how they will contribute to Liberia’s national development objectives.
Director of the Indirect Taxation Unit at the MFDP, Mamadee A. Bility, explained that the Act covers tax holidays, customs duty waivers, reduced tax rates, tax exemptions, concession agreements, executive orders, and other forms of preferential tax treatment.
Mr. Bility disclosed that beneficiaries will be required to register their incentives, maintain relevant records for seven years, submit periodic reports, and comply with monitoring and audit requirements.
He warned that failure to meet these obligations could result in the suspension or revocation of incentive certificates, recovery of unpaid taxes, financial penalties or prosecution in cases involving abuse or non-compliance.
He further announced that all existing beneficiaries have until the end of December to register under the new system, with full implementation of the Act scheduled to commence on January 1.
Delivering remarks at the event, Auditor General P. Garswa Jackson Sr., welcomed the initiative, describing it as a significant step toward strengthening public financial management in Liberia.
He emphasized that widespread public awareness of the law is essential to ensuring compliance while promoting transparency, accountability and good governance across government institutions.
Also speaking at the event, Senator Nyan D. Twayen Jr., commended the passage of the legislation, noting that it would strengthen oversight of tax incentives and prevent companies from continuing to benefit improperly from exemptions after transitioning into commercial production.
The senator said the Legislature would continue to exercise its oversight responsibility to ensure that tax incentives are granted transparently and subjected to periodic review in accordance with the law.
Representing the Office of the President, Presidential Economic Advisor Morley P. Kamara, reaffirmed the Boakai administration’s commitment to responsible fiscal management, transparency and accountability.
He stressed that tax incentives should be treated as strategic investments that create jobs, stimulate economic growth and deliver measurable benefits to the Liberian people.
Mr. Kamara expressed confidence that the successful implementation of the Tax Expenditure Management Act of 2025 would enhance investor confidence, strengthen domestic revenue mobilization, improve fiscal transparency and ensure that tax incentives support sustainable and inclusive economic development throughout Liberia.
