The Plenary of the House of Representatives has mandated 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 House’s 6th Day Sitting of the 2nd Quarter of the 2nd Session held on Thursday, May 29, 2025.
The decision followed a communication from Montserrado County Electoral District #7 Representative, Emmanuel Dahn, calling for the Liberia Revenue Authority (LRA) and the Ministry of Finance and Development Planning (MFDP) to provide a full update on all tax incentives, exemptions, and expenditures currently benefiting concessionaires and investors operating within the country.
According to him, the request is aligned in 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 government.
“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,” Rep. Dahn stated.
He further emphasized the importance of such a probe amid growing national concerns about 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 is expected to:
- Scrutinize tax expenditures from FY2018 to present;
- Assess the revenue impact of all tax exemptions granted;
- Determine the compliance status of benefiting entities;
- Make recommendations on policy reforms or corrective measures.
The House has instructed the Joint Committee to begin work immediately and report its findings within a reasonable timeframe.
The Legislature, under the leadership of Speaker Rt. Hon. Richard Nagbe Koon, remains committed to transparency, fiscal responsibility, and sound economic governance in the best interest of the Liberian people.