Lower House Joint Committee Poised to Examine Liberia Tax Expenditures
Monrovia, Liberia: The Plenary of the Lower House at the 55th Legislature instructed its Committees on Investment and Concessions; Mines, Energy, Natural Resources & Environment; and Ways, Means, and Finance to launch a comprehensive inquiry into Liberia’s tax expenditures.
The decision was reached during the Sixth Day Sitting of the Second Quarter of the Second Session of the Legislature held on Thursday, May 29, 2025.
In his communication, Representative Emmanuel Dahn of Montserrado County Electoral District #7 requested the presence of the Commissioner General of the Liberia Revenue Authority, Dorbor Jallah, and Minister Augustine Ngafuan of the Ministry of Finance and Development Planning to provide a full update on all tax incentives, exemptions, and expenditures currently benefiting concessionaires and foreign investors operating within the country.
According to Representative Dahn, the request is aligned with Section 57 of the Liberia Revenue Code, which mandates the Commissioner General of the LRA and the Minister of Finance and Development Planning to report annually on tax expenditures.
These reports are to include all revenue foregone due to concessions, investment incentives, and other forms of tax relief granted by the government.
Rep. Dahn: “The House recognizes the government’s efforts to stimulate economic growth, attract foreign direct investment, and support local businesses. However, we must ensure transparency, compliance with the terms of concession agreements, and the overall effectiveness of our current tax expenditure policy.”
He further emphasized the importance of such a probe amid growing national concerns regarding domestic revenue mobilization and the need to ensure that tax incentives are not only lawful but also delivering the intended socio-economic benefits.
The Joint Committee investigation will entail scrutinizing tax expenditures from Fiscal Year 2018 to Fiscal Year 2025; assessing the revenue impact of all tax exemptions granted; determining the compliance status of benefiting entities; and providing recommendations on policy reforms or corrective measures.
This mandate takes immediate effect, as the committees have to report their findings within a reasonable timeframe.
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