The Liberia Revenue Authority (LRA) in collaboration with the Ministry of Finance and Development Planning have officially launched Liberia’s first ever Value Added Tax (VAT) Nationwide Awareness Campaign at the headquarters of the LRA in Paynesville.
Officially launching the campaign Friday, Minister of Finance and Development Planning Augustine Kpehe Ngafuan, described the launch as a critical step toward strengthening domestic resource mobilization at a time when Liberia must increasingly rely on its own resources to finance development.
Minister Ngafuan emphasized that while the national budget exists as a document, its credibility depends on the ability of the Liberia Revenue Authority to raise the revenue necessary to translate plans into tangible development outcomes. The Minister commended the LRA for its strong performance and institutional progress over the past two years.
He noted that 2024 recorded the highest revenue performance in Liberia’s history and that 2025 surpassed that record, expressing confidence that the Authority is on course to collect over one billion United States dollars for the first time.
Ngafuan stressed the need to close leakages and increase domestic revenue collection, particularly in an era when overseas development assistance is receding. According to the Minister, Liberia cannot depend indefinitely on partners and must strengthen its fiscal sovereignty by modernizing its tax system. He called on citizens to embrace VAT as an investment in the nation’s future and urged the LRA to ensure that awareness efforts are visible, inclusive, and nationwide so that every community understands the reform.
In a special statement, LRA Commissioner General James Dorbor Jallah described the launch as a defining moment in Liberia’s fiscal transformation. He stated that effective January 1, 2027, Liberia will transition from the existing Goods and Services Tax to a modern Value Added Tax system, aligning the country with over 170 nations worldwide that utilize VAT as a transparent and efficient consumption tax.
Commissioner General Jallah clarified that VAT is not designed to punish businesses or burden citizens, but to create fairness, accountability, and growth in tax administration. He explained that VAT broadens the tax base, reduces cascading taxation, strengthens compliance, and enhances efficiency in revenue collection. He underscored that the reform forms part of broader efforts to modernize, digitize, and strengthen the LRA’s systems and institutional capacity.
The Commissioner General announced that the awareness campaign marks the beginning of a comprehensive nationwide engagement process that will include stakeholder consultations, sector specific workshops, training programs, and public education initiatives across multiple communication platforms. He reaffirmed that VAT implementation will be carried out in partnership with businesses, taxpayers, and development partners.
Commissioner for the Domestic Tax Department Margaret Krote highlighted the importance of early engagement and preparation, assuring the business community of the LRA’s commitment to providing guidance, training, and practical tools to facilitate compliance. She described VAT as a reform intended to strengthen fairness and accountability within Liberia’s revenue framework.
The Legislature Budget Office representing the Joint Committee of the Legislature on Ways and Means pledged full legislative support for the reform and called on citizens to see VAT as an investment in Liberia’s development. Lawmakers emphasized the importance of public awareness and nationwide education to encourage compliance.
Development partners welcomed the initiative. Representatives of the European Union described the reform as a positive and strategic step in strengthening domestic resource mobilization and reaffirmed continued support to the Government of Liberia.
The African Development Bank Country Manager, Rees Mwasambili, noted that VAT enhances growth, transparency, and tax collection efficiency and contributes to long term fiscal resilience. He referenced the Bank’s recent approval of an 18.3 million United States dollar financing package through the African Development Fund to strengthen revenue administration and governance systems in Liberia.
The Liberia Institute of Tax Practitioners expressed strong support for the initiative and reaffirmed its commitment to working alongside the LRA to guide taxpayers through the transition process. Representatives of Customs Brokers similarly pledged continued cooperation and support.
The VAT Nationwide Awareness Campaign will begin in Montserrado County and expand to all fifteen counties, targeting businesses, civil society, local leaders, and the general public to ensure full understanding and preparedness ahead of implementation.
The LRA reiterated that VAT must serve development, and development must serve the people. Through partnership, transparency, and sustained engagement, the LRA and the Ministry of Finance aim to ensure a smooth transition that strengthens domestic resource mobilization and supports a more resilient and self-reliant Liberia.
