The Ministry of Finance and Development Planning (MFDP) has rolled out a sweeping public awareness campaign on the Tax Expenditure Management Act of 2025, signaling a bold step in Liberia’s quest to modernize fiscal governance, strengthen transparency, and safeguard public finances.
The campaign, which began in Buchanan, Grand Bassa County following its national launch in Monrovia, convened government officials, business leaders, civil society representatives, youth groups, development partners, and the media. Its purpose: to deepen public understanding of Liberia’s new tax governance framework and ensure broad ownership of reforms designed to make tax incentives more accountable and impactful.
Framed as a cornerstone of President Joseph Boakai’s economic reform agenda, the initiative underscores the administration’s determination to improve domestic revenue mobilization and guarantee that tax concessions deliver measurable returns. By tightening oversight, the government aims to prevent unnecessary revenue losses while channeling resources into critical sectors such as education, healthcare, infrastructure, agriculture, and social protection.
Nehemiah Fensuah, Technical Liaison Focal Point in the Ministerial Delivery Unit, described the outreach as “a critical step toward nationwide ownership and effective implementation of the Act.” He emphasized that the dialogue provides an opportunity to exchange views, address concerns, and strengthen collaboration among stakeholders.
For the first time in Liberia’s history, the legislation establishes a comprehensive legal framework for the approval, monitoring, evaluation, and reporting of tax expenditures. Fiscal experts note that weak oversight of tax incentives has long plagued developing economies, with the International Monetary Fund (IMF) warning that exemptions, deductions, and preferential tax rates can amount to several percentage points of GDP. Transparency and regular evaluation, therefore, are essential for sustainable public finances.
The MFDP’s campaign is scheduled to expand to Margibi, Bong, and Nimba Counties in the coming weeks, before reaching other regions. Ebenezer Nyah, Technical Focal Point in the Office of the Deputy Minister for Fiscal Affairs and lead facilitator of the Buchanan dialogue, stressed the importance of decentralization. “Taking this initiative beyond the capital ensures equal access to information for businesses and citizens throughout Liberia,” he said, urging participants to serve as ambassadors of reform within their communities.
The Buchanan session drew participants from Grand Bassa, River Cess, Grand Kru, and Sinoe Counties, reflecting the government’s commitment to regional inclusion. Attendees engaged MFDP officials in extensive discussions on implementation procedures, eligibility criteria, compliance requirements, and reporting obligations. Many welcomed the initiative as timely and practical, noting that it clarified misconceptions and enhanced their understanding of how the law will affect businesses, investors, and public institutions.
Public finance experts highlight that effective management of tax expenditures is now an international best practice, enabling governments to assess whether incentives generate sufficient investment, employment, and growth to justify forgone revenue. For Liberia, where domestic revenue remains central to financing national priorities, the Tax Expenditure Management Act represents a decisive step toward building a transparent, evidence-based tax system.
Officials believe the reform will not only strengthen fiscal sustainability but also boost investor confidence and reinforce Liberia’s long-term economic growth trajectory. As the campaign unfolds across the country, the message is clear: tax incentives must serve the people, not drain the treasury.
