By: Julius Konton
The Liberian Ministry of Finance and Development Planning (MFDP) has launched a nationwide public awareness campaign on the Tax Expenditure Management Act of 2025, marking another significant milestone in the country’s ongoing efforts to strengthen fiscal governance, improve transparency, and modernize public financial management.
The county-level outreach officially commenced in Buchanan, Grand Bassa County, after the national launch in Monrovia, bringing together government officials, business leaders, civil society organizations, youth representatives, development partners, and members of the media to deepen public understanding of the country’s newest tax governance framework.
The campaign forms part of the Boakai Administration’s broader economic reform agenda aimed at improving domestic revenue mobilization, increasing accountability in the management of tax incentives, and ensuring that government tax concessions generate measurable economic returns while protecting public finances.
Following the Grand Bassa engagement, similar awareness programs are scheduled for Margibi, Bong, and Nimba Counties in the coming weeks before expanding to other parts of Liberia.
Opening the stakeholder dialogue, Nehemiah Fensuah, Technical Liaison Focal Point in the Ministerial Delivery Unit at the MFDP, described the awareness campaign as a critical step toward ensuring nationwide ownership and effective implementation of the Tax Expenditure Management Act.
He explained that the outreach seeks to educate citizens, businesses, government agencies, civil society organizations, and other stakeholders on the objectives, provisions, implementation mechanisms, and long-term benefits of the legislation.
“Today’s engagement provides an opportunity to deepen our understanding of the Act, exchange views, address concerns, and strengthen collaboration among stakeholders for its successful implementation,” Fensuah stated.
According to him, the legislation establishes, for the first time, a comprehensive legal framework governing the approval, monitoring, evaluation, and reporting of tax expenditures and fiscal incentives in Liberia.
He noted that the Act is intended to ensure that tax incentives directly support national development priorities while preventing unnecessary revenue losses that could otherwise finance critical investments in education, healthcare, infrastructure, agriculture, and social protection.
Fiscal policy experts have long identified weak oversight of tax incentives as a challenge across many developing economies.
According to the International Monetary Fund (IMF), tax expenditures including exemptions, deductions, credits, and preferential tax rates can amount to several percentage points of a country’s Gross Domestic Product (GDP), making transparency and regular evaluation essential for sustainable public finances.
In Liberia, strengthening domestic revenue mobilization remains a key pillar of the Government’s ARREST Agenda for Inclusive Development (AAID) and complements ongoing reforms supported by international partners, including the IMF, World Bank, African Development Bank, and the European Union.
The Tax Expenditure Management Act seeks to ensure that every tax incentive granted delivers measurable economic and social value while safeguarding government revenues needed to finance national development.
Also addressing participants, Ebenezer Nyah, Technical Focal Point in the Office of the Deputy Minister for Fiscal Affairs and lead facilitator of the day-long dialogue, emphasized the importance of taking the awareness campaign beyond the capital.
He said decentralizing the initiative guarantees equal access to information for businesses and citizens throughout Liberia, enabling greater public participation in the implementation of the new law.
“The Tax Expenditure Management Act is designed to promote fiscal discipline, strengthen public confidence in the tax system, and ensure that tax incentives deliver measurable economic and social benefits,” Nyah said.
He encouraged participants to serve as ambassadors of the reform by sharing knowledge acquired during the workshop within their communities and institutions.
Participants welcomed the initiative, describing it as timely, practical, and necessary.
Representatives from the private sector, youth organizations, civil society groups, government institutions, and the media engaged MFDP officials in extensive discussions on implementation procedures, eligibility criteria for tax incentives, reporting obligations, and compliance requirements.
Many participants said the interactive dialogue helped clarify misconceptions surrounding tax incentives and enhanced their understanding of how the legislation will affect businesses, investors, and public institutions.
The Buchanan session attracted participants from Grand Bassa, River Cess, Grand Kru, and Sinoe Counties, demonstrating the government’s commitment to ensuring broad regional participation in one of Liberia’s most significant fiscal governance reforms in recent years.
Public finance experts note that effective management of tax expenditures has become an international best practice, helping governments assess whether tax incentives generate sufficient investment, employment, and economic growth to justify the revenue forgone.
For Liberia, where domestic revenue remains central to financing national development priorities, officials believe the Tax Expenditure Management Act represents an important step toward building a more transparent, accountable, and evidence-based tax system capable of supporting long-term economic growth, improving investor confidence, and strengthening fiscal sustainability.
