Liberia Prepares For VAT Transition, Launches Nationwide Awareness Campaign

MONROVIA, LIBERIA: The Liberia Revenue Authority (LRA), in collaboration with the Ministry of Finance and Development Planning, has officially launched a nationwide awareness campaign for Liberia's transition from the Goods and Services Tax (GST) to the Value Added Tax (VAT) by 2027.

The campaign was launched on Friday, February 20, 2026, at the headquarters of the Liberia Revenue Authority in Paynesville. The nationwide campaign awareness will include intensive stakeholder consultations, specialized training for the business community, and public education programs.

Speaking during the launch, the Commissioner General of the Liberia Revenue Authority, Dorbor Jallah described the pending VAT transition as a defining moment in Liberia’s fiscal history.

Commissioner Jallah said the goal of the campaign is to ensure that every sector, from large-scale importers to small-market retailers is prepared for the digital and administrative requirements of the new system to be introduced on January 1, 2027.

He emphasized that the launch is not merely a public awareness campaign, but a milestone in the nation’s domestic resource mobilization journey, to enhance transparency, fairness, accountability, and national self-reliance.

The LRA Boss added that businesses will benefit from a level playing field, while the government will gain stable, predictable revenue streams to finance public services. Jallah also stated that the vulnerable populations will be protected through measures such as zero-rating of essential goods.

“VAT will broaden our tax base and improve compliance efficiency. It is a fairer, more modern system that aligns Liberia with international best practices and ECOWAS protocols".

“VAT is not designed to punish businesses or burden citizens, it is designed to create fairness, accountability, and growth", the Commissioner stated.

He said unlike the Goods and Services Tax system, which often results in “tax cascading” (tax on tax), VAT is designed as a multi-stage tax that allows input credits, to strengthen transparency and reduce the cost of doing business.

VAT charges tax on value added at each stage of production and distribution, allows businesses to claim credits for input taxes, and largely self-enforces through invoice matching and documentation. According to research, VAT is currently used by over 170 countries globally.

Meanwhile, launching the Value Added Tax awareness campaign, the Minister of Finance and Development Planning, Augustine Ngafuan, said the initiative indicates a boost in Liberia's tax payment system.

He said modernizing tax systems, will improve revenue generation and put the government on track to achieve its development goals.

“This transition is about building our roads, powering our energy grid, and equipping our healthcare and education sectors through self-reliance.”

"Revenue collection is the engine that transforms our national budget from a mere document into tangible investments,” Minister Ngafuan underscored.

For their part, development partners applauded the reform initiative. Representing the European Union, Anna Brzozowska highlighted that VAT is critical for fiscal predictability and modernization.

She commended Liberia’s achievements and stressed that public awareness, social acceptance, and effective communication are key to a successful rollout, particularly for those in remote areas.

The Value Add Tax awareness campaign launch brought together senior government officials, representatives of the Liberia Institute of Tax Practitioners, members of the business community, development partners including the African Development Bank, the World Bank, and the European Union among others.