To Boost Revenue Growth, Ease Tax Payment
Monrovia, Liberia – In order to promote economic growth, improve national development, and assist taxpayers, the Liberia Revenue Authority (LRA) is scheduled to implement major tax reforms. The National Legislature’s approved revisions to the Liberia Revenue Code, which were issued as a handbill, will be fully implemented by the LRA on April 1.
Beer, wine, and other beverages made from fermentation specified under Harmonized Codes 2204, 2205, 2206, and 2208 of the Liberia Revenue Code are among the excisable commodities that are reduced in excise duties under the modification, which is one of the most significant improvements.
This cut will relieve importers’ and manufacturers’ financial strain, promoting domestic manufacturing and stimulating the economy. Since reduced excise taxes contribute to price stability and affordability, consumers should also gain.
In an effort to facilitate compliance and enhance the taxpayer experience, the tax return filing deadline has been moved from 5:00 PM to 11:59 PM on the day of the deadline. Businesses and individuals may now satisfy their tax responsibilities with greater flexibility and less worry thanks to this modification. Now, taxpayers may file their returns whenever it is most convenient for them within the allotted time frame by utilizing the LITAS online platform. Furthermore, taxpayers who submit their returns after 5:00 PM will not be subject to late filing fines, interest charges, or penalties. This is a huge relief for companies.
The revised legislation raises the Goods and Services Tax (GST) from 10% to 12% in anticipation of Liberia’s January 2027 switch to a Value Added Tax (VAT) system.
It is anticipated that this modification will greatly increase domestic income to fund national development projects including healthcare, education, and infrastructure. Additionally, the adjustment guarantees economic stability and gets companies ready for the complete rollout of the VAT system, which is scheduled to start at 15 percent in 2027.
The Liberia Institute of Tax Practitioners, the National Customs Brokers Association, the Fula Business Association, the Liberia Chamber of Commerce, and the Liberia Business Association are among the stakeholders that the LRA has been actively interacting with prior to the implementation of the new legislation.
In addition to supporting national prosperity, the LRA express dedication to an effective revenue collection system that makes tax compliance easier and more equitable for both individuals and enterprises. These changes demonstrate the government’s commitment to bolstering the economy, enhancing public services, and guaranteeing a more prosperous Liberia for all.
