IPNEWS: The Commissioner of the Liberia Revenue Authority James Dorbor Jallah has described the Tax Expenditure Management Act of 2025 as a landmark fiscal reform that will strengthen transparency, accountability, and oversight in the administration of tax incentives while supporting domestic revenue mobilization and sustainable economic growth.
The initiative, led by the Ministry of Finance and Development Planning (MFDP) in collaboration with the Liberia Revenue Authority, forms part of the Government of Liberia’s broader public financial management reform agenda aimed at strengthening fiscal discipline, improving the oversight of tax incentives, and ensuring that public resources generate greater value for national development.
Speaking Wednesday when he launched the Tax Expenditure Management Act of 2025 at Paynesville City Hall, Commissioner General Jallah said the new legislation marks a significant milestone in ensuring that tax incentives are effectively managed and aligned with Liberia’s national development priorities.
He emphasized that while tax incentives remain an important policy tool for attracting investment, creating jobs, promoting industrial development, and stimulating economic growth, they must be administered within a transparent and accountable legal framework to ensure they deliver measurable economic and social benefits.
“The Tax Expenditure Management Act is not intended to eliminate legitimate investment incentives. Rather, it ensures that incentives are granted based on sound economic justification, properly monitored, and periodically reviewed to determine whether they continue to achieve their intended objectives,” Commissioner General Jallah said.
Highlighting the rationale behind the reform, the Commissioner General cited recent customs data showing that customs tax expenditure rose by 55.9 percent, from US$226.6 million in 2024 to US$353.3 million in 2025, while customs revenue increased by 17.7 percent, from US$221.4 million to US$260.6, million during the same period.
He noted that tax expenditure represented 135.6 percent of customs revenue in 2025, compared with 102.3 percent in 2024, highlighting the importance of ensuring that every tax incentive granted delivers measurable economic and social value.
Commissioner General Jallah indicated that the Act institutionalizes the preparation and publication of annual tax expenditure reports, providing policymakers, legislators, development partners, investors, the private sector, and the public with greater visibility into the fiscal cost and impact of tax incentives while supporting evidence-based policymaking and fiscal decision-making.
He reaffirmed the LRA’s commitment to working closely with the Ministry of Finance and Development Planning, the Legislature, line ministries and agencies, development partners, and the private sector to ensure the successful implementation of the legislation.
The Act establishes a comprehensive legal framework for the approval, administration, monitoring, evaluation, and reporting of tax expenditures, ensuring that tax incentives are granted transparently, aligned with Liberia’s development priorities, and regularly assessed to determine whether they continue to deliver measurable economic and social benefits.
The launch brought together senior government officials, development partners, private sector representatives, civil society organizations, and other stakeholders, reflecting a broad national support for reforms to strengthen fiscal transparency, improve the management of tax incentives, and enhance domestic revenue mobilization.
