Monrovia — Finance Minister Augustine Kpehe Ngafuan has officially launched Liberia’s nationwide Value Added Tax (VAT) awareness campaign, commending the Liberia Revenue Authority (LRA) for breaking historical revenue records and reaffirming the Government’s commitment to strengthening domestic resource mobilization.
The VAT regime will take effect on January 1, 2027.
Minister Ngafuan expressed gratitude to the LRA leadership and staff for their contributions to Liberia’s fiscal resilience.
“Over the past two years, we have been breaking records. 2024 saw the highest revenue in Liberia’s history, and 2025 built on that achievement. As we move toward 2026, we are set to cross major milestones — including the billion-dollar threshold — because of the dedication of our revenue teams and the support of our partners,” Minister Ngafuan said.
He highlighted the Government’s shift toward greater self-reliance, noting the launch of an $18 million Domestic Resource Mobilization Project, supported by the African Development Bank, to bolster tax administration, close revenue leakages, and strengthen enforcement. The initiative will enhance efficiency across multiple government institutions and improve collection nationwide.
Minister Ngafuan emphasized that the VAT transition is central to Liberia’s economic modernization.
Acknowledging concerns that often accompany reform, he pledged a comprehensive change-management approach across all 15 counties, including public education, stakeholder engagement, targeted training, and hands-on support to ensure understanding and compliance.
“We must move beyond awareness to genuine understanding. Brochures and messages are necessary but insufficient; we will provide training, hand-holding, and verification to ensure taxpayers are prepared,” he said.
He reiterated that taxpayer registration must be well advanced by mid-2026 in preparation for the VAT implementation date of January 1, 2027.
“That date is the target, and we will not retreat from it,” he affirmed.
Minister Ngafuan underscored the importance of strengthening domestic revenue as global development financing becomes more constrained, expressing confidence in the LRA’s capacity to meet national expectations.
He extended appreciation to Commissioner-General James Dorbor Jallah, the LRA team, and all stakeholders for their commitment to Liberia’s fiscal future.
Speaking earlier, Commissioner-General Jallah described the nationwide awareness campaign as a defining moment in Liberia’s fiscal history.
“The transition to VAT is not just a new tax — it is a modernization of our tax system aimed at strengthening transparency, fairness, and domestic resource mobilization so Liberia can finance its own development,” he said.
Commissioner-General Jallah outlined VAT’s benefits, noting that it is a modern consumption tax used by more than 170 countries. VAT will broaden the tax base, reduce cascading taxes, improve neutrality in business transactions, and provide a more stable and predictable revenue stream to strengthen the Government’s ability to deliver public goods and services.
He emphasized that VAT is designed to promote fairness and accountability, not to punish businesses or burden citizens. Essential goods and services affecting vulnerable populations will be zero-rated to protect those most in need.
To ensure a smooth and inclusive transition, the LRA will implement a comprehensive readiness program, including nationwide stakeholder consultations and sector-specific workshops for businesses; public education campaigns across media platforms; training programs for accountants, SMEs, and tax practitioners; publication of simplified VAT guides in clear, accessible language; upgrades to LRA digital infrastructure, IT platforms, and refund capacity; strengthening of compliance frameworks, audit capabilities, and taxpayer services; capacity building and staff training across the LRA.
“We call on the business community to engage early: prepare your systems, train your staff, and ask questions. Those who prepare early will transition smoothly; those who delay will face difficulties. Let us choose preparedness and partnership,” Commissioner-General Jallah urged.
The VAT reform process traces back to 2009, when the ECOWAS Commission began efforts to harmonize tax systems among member states.
On May 26, 2009, Ministers meeting in Abuja adopted a Directive to harmonize VAT laws across the region. Subsequently, the ECOWAS Commission and the Government of Liberia, through the Ministry of Finance, signed a Memorandum of Understanding on August 3, 2009 — under the leadership of the current Minister of Finance.
That agreement laid the institutional and technical foundation for introducing VAT in Liberia. Since then, successive administrations have advanced the reform through technical missions, study tours, capacity-building programs, and legislative drafting. The first draft VAT law was produced in 2011.
VAT reform in Liberia is therefore not the achievement of a single administration. It represents a long-term national reform effort spanning multiple governments, supported by ECOWAS, development partners, and dedicated Liberian professionals.
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