The bill, still in its early stages, would require senders of money abroad to pay the 5% tax, which would be collected quarterly by the U.S. Treasury Department.
Washington – A draft bill introduced by Republican lawmakers in the U.S. House of Representatives is drawing sharp criticism in Liberia and other developing countries.
By Gerald C. Koinyeneh, [email protected]
The proposed legislation seeks to impose a 5% excise tax on all international remittances—raising serious concerns about the potential impact on Liberia’s already fragile economy.
The bill, still in its early stages, would require senders of money abroad to pay the 5% tax, which would be collected quarterly by the U.S. Treasury Department.
The initiative is part of a broader push under former President Donald Trump’s political movement to implement tougher immigration and fiscal policies.
For Liberia, the proposed tax could be devastating. Remittances from the Liberian diaspora—particularly those living in the United States—are a lifeline for thousands of families.
According to the World Bank, remittances to Liberia account for a significant share of the country’s GDP, often surpassing direct foreign investment and even some forms of development aid.
Economists warn that taxing remittances could reduce the volume of funds sent home, threatening household livelihoods and undercutting small businesses, educational support, and healthcare access.
“Liberian families rely heavily on remittances to survive,” said Samuel Kollie, a Monrovia-based economist. “If this tax goes into effect, it won’t just affect individuals—it could destabilize entire communities that depend on that income.”
The proposal has triggered concern across the African continent, where countries such as Nigeria, Ghana, Kenya, and Liberia count on diaspora contributions for economic stability. Critics say the policy unfairly targets low-income immigrant communities and threatens global economic ties.
Supporters of the bill claim the tax revenue would help fund U.S. border enforcement and reduce undocumented immigration. However, many see it as a punitive move against immigrant communities who are already contributing significantly to the economies of both their host and home countries.
Human rights organizations, immigrant advocacy groups, and several African governments are expected to oppose the measure strongly. In Liberia, government officials have yet to issue a formal response, but members of the diaspora community are already organizing to lobby against the bill.
As Congress debates the legislation, Liberians at home and abroad are bracing for what could be a major disruption in one of the country’s most dependable sources of income.
