Boakai Government’s Tax Increases Under Scrutiny: Is The Up Administration Shifting Liberia’s Economic Burden Onto Ordinary Citizens?

MONROVIA, LIBERIA – The administration of President Joseph Nyuma Boakai is facing growing questions over successive tax increases, following evidence that the government has raised the Goods and Services Tax (GST), reinstated petroleum surcharges and increased excise duties on selected imported products within two consecutive budget cycles.

An investigation by Smart News, based on documents from the International Monetary Fund (IMF) and the Liberia Revenue Authority (LRA), establishes that the standard GST increased from 10 percent to 12 percent in April 2025 and subsequently to 13 percent in 2026.

According to the IMF, the 2025 adjustment was expected to generate approximately US$10.7 million in additional revenue, while the reinstated US$0.20 petroleum surcharge was projected to generate another US$9 million.

For 2026, the government introduced another GST increase, alongside higher excise tariffs on selected imported goods, particularly beverages and tobacco.

The IMF estimated their combined revenue contribution at approximately US$6.9 million.

The developments raise questions about how much additional financial pressure is being placed on consumers and businesses already struggling with the cost of living.

KONNEH’S EARLIER WARNING RESURFACES

Interestingly, Gbarpolu County Senator Amara Mohammed Konneh had previously raised concerns about the government’s taxation policies.

In April 2024, the former Finance Minister reportedly challenged the continued use of the L$70,000 annual Personal Income Tax exemption threshold, arguing that depreciation of the Liberian dollar had made the threshold inadequate.

He recommended increasing the exemption threshold to approximately L$200,000 to protect low-income workers from excessive taxation.

The published Personal Income Tax structure still identifies L$70,000 as the annual tax-exempt threshold.

In October 2025, Konneh again called for comprehensive fiscal reforms, warning that reliance on consumer-based taxation was worsening economic hardships for ordinary Liberians.

Details coming in our next report.