Monrovia — The Chairman of the Senate Committee on Public Accounts Amara Konneh has referred to as for the revision of assorted tax incentives agreements signed by the Authorities of Liberian and international corporations working within the nation to determine its impression on Liberians.
By Obediah Johnson
Senator Konneh noticed that within the wake of Liberia’s extended battle, which profoundly impacted its economic system over22 years in the past, ensuing within the largest financial collapse recorded because the finish of World Warfare II, successive administrations adopted varied funding incentive mechanisms in legal guidelines to draw international direct funding and foster post-conflict restoration.
He maintained that these incentives, which embody tax exemptions, royalty reductions, and particular concessions, have performed a pivotal position in stimulating funding, creating employment alternatives for Liberians, and bolstering key sectors akin to mining, agriculture, forestry, and vitality.
His assertions had been contained in a communication addressed to the Senate on Thursday, June 26, 2025.
He added that because the nation continues its growth journey, rising issues in regards to the perpetuity of those incentives warrant critically assessing their effectiveness, fiscal implications, and developmental impression.
“Whereas they’ve facilitated capital inflows, persistent income efficiency challenges restrict our capability to finance important public sector investments and spend money on Liberians. Moreover, compliance points amongst corporations benefiting from incentives elevate questions on whether or not these tax waivers are reaching their supposed financial outcomes.”
He stated a specific establishment requiring fast consideration on this assessment is the Nationwide Bureau of Concessions (NBC), which is accountable for monitoring concession settlement implementation.
Senator Konneh noticed that the NBC has a major mandate to make sure compliance, transparency, and accountability, delays in conducting well timed and thorough opinions and holding concessionaires accountable to their commitments in alternate for tax incentives have led to gaps in oversight, leading to financial losses that will hinder Liberia’s fiscal sustainability and growth.
He stated to deal with these issues proactively, the Senate Plenary should convene a proper assessment session to evaluate Liberia’s funding incentive frameworks and their general financial and financial impacts to find out their effectiveness for Liberia in the present day versus the Liberia of 23 years in the past.
He acknowledged that this assessment have to be led by a particular committee supported by the Senate advisor.
Senator Konneh maintained that the assessment ought to allow knowledgeable legislative discussions with Govt Department stakeholders and information essential changes to make sure incentives align with Liberia’s broader financial and growth targets for fostering financial growth and alternatives for Liberians.
He, nonetheless, beneficial that the Senate invite authorities of the Ministry of Finance and Improvement Planning (MFDP) to current detailed fiscal analyses and the budgetary implications of current incentives signed with corporations working within the nation.
He careworn that the Liberia Income Authority (LRA) also needs to seem to share the newest Tax Expenditure Report, detailing income results of tax exemptions and concessions.
Senator Konneh maintained that the Nationwide Funding Fee (NIC) also needs to assess the effectiveness of incentives in attracting and retaining funding, whereas the Nationwide Bureau of Concessions (NBC) be made to share a accomplished concession data sheet, outlining compliance ranges and oversight efforts.
He referred to as for the Ministries of Mines & Power, Agriculture, and the Forestry Improvement Company to share lively and moribund mineral deposits, concessions, and forest concessions throughout Liberia and supply sector-specific insights into agreements’ financial and developmental impression.
“We stand at a pivotal juncture in our growth journey. The worldwide financial panorama is experiencing vital and infrequently unpredictable modifications, bringing forth uncertainties associated to bilateral and multilateral monetary establishments, commerce insurance policies, and the general trajectory of world capitalism.”
He acknowledged that it’s crucial that Liberia takes proactive steps to form its financial future as a small growing nation by leveraging its pure endowments, guaranteeing its funding incentives and financial insurance policies are comprehensively reviewed, thoughtfully crafted, sustainable, and adaptable to the evolving circumstances.
“As we method the expiration of particular incentives presently loved by corporations and anticipate the potential ratification of recent investments throughout this fifty fifth session of the Legislature, it’s an opportune second for us to have interaction in a complete assessment of Liberia’s funding incentives.”
Senator Konneh expressed the hope that the assessment of tax incentives will assist the nation pinpoint areas for enchancment, improve compliance mechanisms, and optimize income technology, thereby securing the important assets essential for our nationwide growth, particularly in gentle of the current reductions in monetary help from our worldwide companions.
Senator Konneh added that it will likely be important to bolster oversight inside the Nationwide Bureau of Concessions to deal with any compliance gaps and be sure that concession agreements align with Liberia’s long-term fiscal and growth targets.
The Plenary of the Liberian Senate has mandated its Committee on Funding and Concessions to scrutinize the communication from the Gbarpolu County lawmaker and report inside two weeks.
