Liberia has formally established an ECOWAS National Tax Transition Steering Committee as it prepares to align domestic tax policy with the Economic Community of West African States (ECOWAS) tax regime.
The committee, created in line with an ECOWAS directive, is tasked with overseeing the domestication and implementation of regional tax measures, coordinating national reforms and ensuring Liberia’s fiscal and revenue policies comply with ECOWAS directives and supplementary acts.
Its remit includes reviewing Liberia’s progress on implementation, identifying integration challenges and proposing practical solutions to strengthen compliance.
“The creation of the Committee demonstrates Liberia’s alignment with ECOWAS’ ongoing drive to strengthen domestic revenue mobilization and ensure the effective implementation of regional tax directives,” the regional economic bloc said in email statement Tuesday.
Officials say the move aims to accelerate tax policy reforms, bolster institutional frameworks and enhance domestic resource mobilization — priorities that could improve Liberia’s fiscal position and investor confidence over time.
For businesses, harmonized tax rules across the region may simplify cross border operations and reduce compliance costs for firms operating in multiple ECOWAS member states, though transitional adjustments could create short-term administrative burdens.
The committee is also charged with convening key national stakeholders to share knowledge, promote transparency and build capacity among revenue agencies and other partners.
The effort is intended to improve VAT management and tighten controls on tax expenditures, measures that can expand the tax base and increase predictable government revenues.
Liberia has been engaged with ECOWAS tax transition initiatives since at least 2021, when the West African Tax Transition Support Programme (PATF) for Liberia was launched. That programme involved the MFDP, Liberia Revenue Authority and civil society representatives, and focused on strengthening domestic tax management, VAT administration and coordination across the region.
The MFDP said it stands ready to work closely with the ECOWAS Commission, national partners and stakeholders to ensure the steering committee fulfills its mandate. The committee will report progress and coordinate the sequencing of legislative and administrative changes required to adopt ECOWAS tax measures.
