As Gov’t Launches Nationwide Public Awareness Drive
Monrovia, Liberia – In preparation for the implementation of a Value Added Tax (VAT) regime scheduled to go into effect on January 1, 2027, the Liberian government has formally launched a nationwide awareness campaign. Augustine Kpehe Ngafuan, Minister of Finance and Development Planning, praised the Liberia Revenue Authority (LRA) for what he called record-breaking revenue performance.
Minister Ngafuan, who spoke during the unveiling on Friday, February 20, 2026, commended the LRA’s leadership and personnel for bolstering domestic revenue collection and putting Liberia in a position to become more financially independent.
“Over the past two years, we have been breaking records. 2024 recorded 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,” he said.
Highlighting a US$18 million Domestic Resource Mobilization Project funded by the African Development Bank, the Minister reaffirmed the government’s commitment to domestic resource mobilization. He stated that the initiative’s goals are to improve tax administration, stop revenue leaks, bolster enforcement, and boost productivity across all government agencies.
Although he admitted that tax adjustments frequently cause public worry, he reassured businesses and citizens of a thorough, statewide change-management approach while describing VAT as a cornerstone of Liberia’s economic modernization plan.
“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 emphasized.
He emphasized that in order to reach the implementation deadline of January 1, 2027, taxpayer registration must be significantly advanced by mid-2026. The goal is that date, and we won’t back down. The VAT awareness campaign, according to LRA Commissioner-General James Dorbor Jallah, represents a significant turning point in Liberia’s fiscal reform process.
“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,” Jallah said.
The LRA states that the VAT, a consumption tax that is in place in more than 170 nations, will increase the tax base, decrease cascading taxes, improve business transaction neutrality, and create a more steady and predictable source of income to fund the provision of public services. Jallah underlined that the goal of the reform is to advance accountability and fairness, adding that in order to protect the most disadvantaged, basic commodities and services will be zero-rated.
The LRA intends to implement a comprehensive readiness program that will include nationwide stakeholder consultations, workshops tailored to specific industries, training for accountants and small and medium-sized businesses, streamlined VAT guides, improvements to IT and digital infrastructure, increased refund capacity, and improved compliance and audit mechanisms in order to ensure a seamless transition, the institution noted.
“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,” he narrated.
The ECOWAS Commission completed regional harmonization efforts in 2009, which served as the foundation for the VAT reform. To standardize VAT rules among member states, ECOWAS Ministers adopted a directive in Abuja on May 26 of that year. Then, on August 3, 2009, the Ministry of Finance signed a Memorandum of Understanding between the Government of Liberia and the ECOWAS Commission, setting the stage for the implementation of VAT.
Technical missions, capacity-building programs, and legislative drafting under succeeding administrations have all helped the reform move forward since the first draft VAT law was created in 2011.
