In a quiet workplace on the outskirts of Monrovia, Isaac Success Yomah manages a stream of transactions from Liberians gathering cash despatched by family members overseas, principally from the US. It’s regular enterprise, and for a lot of of his clients, important.
By Aria Deemie with New Narratives
However a provision in President Trump’s so-called “Big Beautiful Bill“ put to the U.S. Congress final month might quickly change that.
The bill, handed by the U.S. Home of Representatives and now awaiting motion within the Senate, would place a 3.5 % tax on remittances despatched out of the U.S. by non-citizens (inexperienced card and different visa holders). U.S. residents wouldn’t pay the tax. The invoice initially had the tax at 5 % however was lowered to three.5 % in Congressional negotiations. If it turns into legislation, the tax will take impact in 2026.
In Liberia, the place remittances are a significant financial lifeline, few are conscious of the proposal. However economists and business operators say the implications may very well be severe.
“It might instantly scale back family revenue for a lot of Liberians,” stated William H. Dassin, a Monrovia-based economist. “Individuals who rely on remittances should make onerous spending decisions. The U.S. sender will seemingly scale back the quantity or cease sending altogether due to the added price.”
Remittances from the diaspora play a vital function in Liberia’s economic system. The Central Financial institution reported practically $60 million in personal inward remittances in September 2024 alone, a lot of it flowing via cash switch operators, cell cash providers, and casual networks.
Liberia obtained roughly $800 million in private remittances in 2023, marking a rise from $689.74 million in 2022. That’s equal to the federal government’s total nationwide funds and accounts for practically 20 per cent of the economic system, one of many highest charges in Africa in line with the World Financial institution.
Liberia isn’t alone. In 2023, remittance flows to Africa attain $54 billion, with Liberia being one of many nations the place these inflows represent the best share of the economic system.
“Our Enterprise May Drop”
At Shine Enterprise Heart in Mount Barclay, Yomah facilitates cash transfers via Western Union, RIA, BNB, and cell platforms. He says the proposed tax may have chilling results.
“I obtain about 30 individuals every day for remittance withdrawal, the vast majority of which is shipped from the USA,” Yomah stated. “Prospects aren’t speaking about it but, but when it turns into costlier to ship cash, folks would possibly scale back what they ship or discover different methods. Our enterprise might drop. Folks would possibly even begin avoiding the formal system altogether.”
He added that any uncertainty tends to spark nervousness amongst clients, lots of whom reside “fee to fee.”
A Blow to Small Enterprises
Dassin warned the ripple results might lengthen past households.
“There are companies right here that depend on remittance funds from clients or companions overseas, particularly these doing small-scale cross-border commerce or e-commerce,” he stated. “If the U.S.-based sender feels it’s too costly to proceed, these companies could lose capital or gross sales.”
The Ministry of Finance and Growth Planning acknowledged receiving questions from New Narratives/FrontPage Africa however didn’t reply earlier than publication.
What Comes Subsequent?
The availability is one small a part of President Trump’s controversial total tax and spending invoice formally titled the The invoice, which nonetheless faces hurdles within the U.S. Senate, has confronted opposition from U.S. lawmakers and Elon Musk, President Trump’s billionaire advisor. Even when the general invoice fails, specialists anticipate the availability can be included in no matter invoice ultimately passes. They warned it might reshape international remittance flows and deeply have an effect on communities that depend on them.
“The federal government and distributors in Liberia ought to begin making ready now,” Dassin stated. “Even when this model doesn’t move, related insurance policies might return. The dependency on remittances leaves us weak.”
This story was a collaboration with New Narratives. Funding was offered by the American Jewish World Service. The funder had no say within the story’s content material.
