An investigation into Liberia’s tax concessions, mining agreements, rising consumption taxes and the government’s responsibility to ensure that investors contribute fairly to national development.
A SMART NEWS INVESTIGATIVE REPORT
MONROVIA, LIBERIA – Liberia is asking its citizens and businesses to contribute more to national revenue through adjustments to consumption taxes, stronger tax enforcement and other fiscal measures. But a fundamental question remains: Is the government applying the same level of urgency to collecting revenue from powerful multinational companies that benefit from substantial tax concessions?
The question is not whether investors should receive incentives. Liberia needs investment, jobs, infrastructure and economic growth. The issue is whether the concessions granted to large companies are justified by measurable benefits to the country—and whether the government is prepared to review arrangements that deprive the national treasury of revenue needed for public services.
Official government figures and assessments by the International Monetary Fund (IMF), together with findings reported from the World Bank’s 2026 Public Finance Review, provide important evidence for examining this issue. They also reveal that the debate is more complicated than simply accusing companies of refusing to pay taxes.
US$240.34 MILLION IN TAX REVENUE FORGONE
One of the most significant figures in Liberia’s tax debate comes from the Ministry of Finance and Development Planning and the Liberia Revenue Authority (LRA).
Their Annual Tax Expenditure Report for 2023–2024 estimated that Liberia forwent approximately US$270.68 million in potential tax revenue in 2023 and US$240.34 million in 2024 through tax exemptions, incentives and other concessions.
The 2024 figure represented approximately five percent of the country’s Gross Domestic Product (GDP).
The report identified three major categories of tax expenditure in 2024:
– Goods and Services Tax exemptions: approximately US$101.51 million.
– Import-duty exemptions: approximately US$84.71 million.
– Business-income-tax concessions: approximately US$54.12 million.
These figures are significant because they demonstrate the scale of revenue the country does not collect under existing tax policies.
However, it is important to clarify that the US$240.34 million is an estimate of potential revenue forgone. It does not mean that the government can automatically collect the entire amount by cancelling exemptions. Some concessions are legally protected, while others may have legitimate economic or social purposes.
The report also acknowledges data limitations. Its estimates cover selected tax categories and do not fully quantify every exemption in the tax system.
Nevertheless, the figures raise a serious public-policy question: Are Liberia’s tax incentives producing enough jobs, investment, infrastructure and economic benefits to justify the revenue being surrendered?
THE MINING SECTOR: WHO BENEFITS FROM LIBERIA’S MINERAL WEALTH?
The mining sector deserves particular attention because Liberia’s economy depends heavily on the extraction and export of natural resources.
Iron ore, gold and other minerals generate substantial commercial activity. Yet the country must ensure that the benefits of those resources translate into government revenue, employment, infrastructure and improved living conditions.
In its 2025 assessment of Liberia, the IMF specifically called for the government to reduce generous tax expenditures, particularly those granted to mining concessions.
The Fund noted that Liberia’s tax incentives had resulted in approximately US$240 million in potential revenue forgone in 2024 and urged stronger action to streamline and refocus generous exemptions.
The IMF’s 2026 assessment went further. It observed that Liberia’s mining concession framework had been affected by changes to legal conditions and fiscal terms, including reduced corporate income-tax rates, relief from indirect taxation and exemptions from the surtax, a form of rental tax.
The government itself acknowledged the need to reform this arrangement.
Among the proposed measures are increasing mineral royalty rates, particularly for gold and iron ore, raising withholding taxes on interest and dividend payments, and transferring fiscal provisions currently contained in the Minerals and Mining Law into the Liberia Revenue Code.
These proposals are intended to establish a more consistent tax framework and improve the government’s share of mineral wealth.
But as of November 1, 2026, the proposed legislative changes to the mining fiscal regime remained a commitment for further action, with a December 31, 2026 milestone identified in the IMF programme.
That means the public must still see the actual legislation, its passage, implementation and measurable results.
A promise to reform mining taxation is not the same as reform being completed.
THE ARCELORMITTAL QUESTION: A US$200 MILLION PAYMENT IS NOT THE SAME AS TAX REVENUE
The case of ArcelorMittal Liberia also illustrates why the public needs clear distinctions between taxes, concession fees, royalties and other payments.
According to the IMF’s 2026 reporting, a one-off concession payment of US$200 million was made by one of Liberia’s largest iron ore companies in March 2026. The payment formed the largest part of the contingent revenue anticipated in the 2026 national budget.
This is an important payment to the country and should be acknowledged.
However, a concession bonus is not the same as corporate income tax, withholding tax or mineral royalties. It does not, by itself, establish how much the company pays annually under each tax category or whether its overall fiscal obligations are adequate.
Liberians therefore deserve a complete account of the company’s financial contributions, including corporate taxes, royalties, customs duties, withholding taxes, concession payments and any exemptions or special fiscal arrangements.
The same standard should apply to every major mining investor operating in Liberia.
The government should publish the relevant figures in a manner that protects legitimate confidential business information while allowing citizens to understand what the country receives from its natural resources.
ORDINARY CONSUMERS FACE NEW TAX MEASURES
While the government is reviewing tax concessions, ordinary Liberians and businesses are also experiencing changes to the tax system.
The Liberia Revenue Authority announced in April 2026 that the Liberia Tax Amendment Act, approved on March 24 and published on April 1, introduced a 13 percent GST on covered services, while telecommunications services remained at 15 percent.
The amended framework also strengthened withholding obligations, penalties for tax evasion, rules concerning non-resident businesses and excise-tax adjustments on selected products.
These changes followed an earlier increase in the GST rate from 10 percent to 12 percent in 2025.
The IMF’s 2026 report identified the increase to 13 percent, together with higher excise tariffs on selected imported goods, as measures intended to close an estimated US$10 million fiscal gap.
The government has also been preparing to introduce a Value Added Tax (VAT) system in 2027, with a standard rate of 15 percent, according to IMF programme documents.
The authorities argue that these measures will strengthen domestic revenue mobilization and support public services.
But the concern among ordinary citizens is understandable: when taxes on services and selected goods increase, the cost may ultimately be passed on to consumers.
For people already struggling with food prices, transportation costs, school fees, rent and electricity, even modest tax adjustments can create additional pressure.
The issue is therefore not whether citizens should pay lawful taxes. It is whether the tax burden is being distributed fairly and whether government is doing enough to collect revenue from sectors and companies with greater financial capacity.
TAX EXEMPTIONS MUST PRODUCE PUBLIC BENEFITS
Tax incentives are not automatically wrong.
Governments worldwide use them to attract investment, encourage new industries, create jobs and support economic development. Liberia must remain competitive in attracting investors.
However, incentives should never become permanent privileges without measurable returns to the country.
Every major concession should be assessed against clear public-interest conditions.
How many Liberians were employed? How many were trained? How much was invested locally? What infrastructure was constructed? How much tax and royalty revenue was paid? Were local businesses given opportunities to supply goods and services?
If a company receives significant tax relief but fails to deliver the promised employment, investment or development benefits, the government must have a transparent mechanism for reviewing the arrangement.
The public should also know when incentives expire, what conditions apply and whether companies have met those conditions.
The government must be careful not to cancel legally protected agreements arbitrarily. But it should use available legal and contractual mechanisms to address concessions that are unjustified, outdated or not delivering their promised benefits.
GOVERNMENT HAS STARTED REFORMS, BUT IMPLEMENTATION REMAINS THE TEST
It would be inaccurate to claim that the Boakai administration has taken no action on tax reform.
The government has introduced amendments to the Revenue Code, strengthened tax administration provisions and adopted new rules intended to define eligible beneficiaries of tax exemptions, establish control mechanisms and require fiscal assessments before incentives are granted.
The IMF has also acknowledged progress toward VAT implementation and the government’s commitment to rationalizing tax exemptions.
However, the Fund continues to identify mining taxation reform and exemption rationalization as priorities.
In its September 28, 2026 review, the IMF again emphasized the importance of domestic revenue mobilization, mining tax reform and the planned VAT rollout.
The government therefore deserves recognition for measures already taken, but it must also be held accountable for commitments that remain unfinished.
The LRA and Ministry of Finance should publish updated information showing how much revenue has been collected from the reforms, how many exemptions have been reviewed, which incentives have been withdrawn or revised, and what additional revenue has been generated.
As of November 1, 2026, the latest comprehensive official Tax Expenditure Report publicly listed by the LRA and Ministry of Finance covers 2023–2024. The public needs an updated report covering subsequent years.
THE QUESTIONS THE GOVERNMENT MUST ANSWER
Smart News believes that the tax fairness debate should move beyond political statements and become a matter of documented public accountability.
The Ministry of Finance and Development Planning, Liberia Revenue Authority and relevant legislative committees should provide answers to the following questions:
1. Which multinational companies currently benefit from tax holidays, customs exemptions, reduced corporate income-tax rates or other special fiscal arrangements?
2. How much revenue does the government forgo annually for each major beneficiary and under each category of tax incentive?
3. What measurable benefits have these companies delivered in employment, local procurement, infrastructure, skills development and community investment?
4. How many tax exemptions have been reviewed, reduced, cancelled or allowed to expire since the Boakai administration took office?
5. What is the status of the proposed amendments to the Minerals and Mining Law and the Liberia Revenue Code?
6. Are companies benefiting from tax incentives meeting the conditions contained in their concession agreements?
7. What mechanisms are in place to prevent profit shifting, transfer-pricing abuse and the artificial movement of profits outside Liberia?
8. Why has the government not yet published a comprehensive updated tax expenditure report covering 2025 and 2026?
These are legitimate questions in a country where citizens are expected to pay taxes and where government repeatedly cites limited resources as a challenge to delivering basic services.
THE LEGISLATURE MUST EXERCISE OVERSIGHT
The National Legislature also has an important responsibility.
Lawmakers should not wait until the annual budget debate to examine tax concessions. The relevant committees should summon officials of the Ministry of Finance and the LRA to explain the country’s tax expenditure framework and the performance of major concession agreements.
Where necessary, the Legislature should request company-by-company fiscal assessments, subject to legitimate legal confidentiality requirements.
It should also examine whether existing concession agreements are delivering the economic benefits originally promised to the Liberian people.
Tax incentives should not be treated as private arrangements that are beyond public scrutiny. They involve public revenue and therefore deserve public accountability.
SMART NEWS CONCLUSION: TAX FAIRNESS MUST APPLY TO EVERYONE
Liberia cannot build a sustainable economy by placing the burden of domestic revenue mobilization primarily on ordinary consumers and small businesses while failing to demonstrate that large investors are contributing their fair share.
At the same time, the country cannot attract responsible investment by creating uncertainty around legitimate agreements or changing tax rules arbitrarily.
The solution is transparency, consistent enforcement, stronger tax administration and a fair review of incentives based on measurable national benefits.
The Boakai administration has introduced tax reforms and made commitments to address mining-sector concessions. The important question now is whether those commitments will translate into legislation, stronger collections and a more transparent system before the end of its mandate.
A US$240.34 million estimated tax expenditure is too significant to be treated as an ordinary accounting figure. It deserves a clear explanation of who benefits, why the incentives exist and what Liberia receives in return.
Liberians should not be asked to carry a greater tax burden without being shown that government is equally serious about collecting what is legally due from powerful companies.
Smart News will continue examining Liberia’s tax policies, concession agreements and public revenue arrangements. Where records raise unanswered questions, we will seek responses from the relevant institutions and companies and bring the findings to public attention.
The national interest must come before special privileges. Tax fairness must apply to everyone.
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