Monrovia — The Chairman of the Senate Committee on Public Accounts Amara Konneh has called for the revision of various tax incentives agreements signed by the Government of Liberian and foreign companies operating in the country to establish its impact on Liberians.
By Obediah Johnson
Senator Konneh observed that in the wake of Liberia’s prolonged conflict, which profoundly impacted its economy over22 years ago, resulting in the largest economic collapse recorded since the end of World War II, successive administrations adopted various investment incentive mechanisms in laws to attract foreign direct investment and foster post-conflict recovery.
He maintained that these incentives, which include tax exemptions, royalty reductions, and special concessions, have played a pivotal role in stimulating investment, creating employment opportunities for Liberians, and bolstering key sectors such as mining, agriculture, forestry, and energy.
His assertions were contained in a communication addressed to the Senate on Thursday, June 26, 2025.
He added that as the nation continues its development journey, emerging concerns about the perpetuity of these incentives warrant critically assessing their effectiveness, fiscal implications, and developmental impact.
“While they have facilitated capital inflows, persistent revenue performance challenges limit our capacity to finance vital public sector investments and invest in Liberians. Additionally, compliance issues among companies benefiting from incentives raise questions about whether these tax waivers are achieving their intended economic outcomes.”
He said a particular institution requiring immediate attention in this review is the National Bureau of Concessions (NBC), which is responsible for monitoring concession agreement implementation.
Senator Konneh observed that the NBC has a significant mandate to ensure compliance, transparency, and accountability, delays in conducting timely and thorough reviews and holding concessionaires accountable to their commitments in exchange for tax incentives have led to gaps in oversight, resulting in economic losses that may hinder Liberia’s fiscal sustainability and development.
He said to address these concerns proactively, the Senate Plenary must convene a formal review session to assess Liberia’s investment incentive frameworks and their overall economic and fiscal impacts to determine their effectiveness for Liberia today versus the Liberia of 23 years ago.
He stated that this review must be led by a special committee supported by the Senate consultant.
Senator Konneh maintained that the review should enable informed legislative discussions with Executive Branch stakeholders and guide necessary adjustments to ensure incentives align with Liberia’s broader economic and development goals for fostering economic expansion and opportunities for Liberians.
He, however, recommended that the Senate invite authorities of the Ministry of Finance and Development Planning (MFDP) to present detailed fiscal analyses and the budgetary implications of existing incentives signed with companies operating in the country.
He stressed that the Liberia Revenue Authority (LRA) should also appear to share the most recent Tax Expenditure Report, detailing revenue effects of tax exemptions and concessions.
Senator Konneh maintained that the National Investment Commission (NIC) should also assess the effectiveness of incentives in attracting and retaining investment, while the National Bureau of Concessions (NBC) be made to share a completed concession information sheet, outlining compliance levels and oversight efforts.
He called for the Ministries of Mines & Energy, Agriculture, and the Forestry Development Agency to share active and moribund mineral deposits, concessions, and forest concessions across Liberia and offer sector-specific insights into agreements’ economic and developmental impact.
“We stand at a pivotal juncture in our development journey. The global economic landscape is experiencing significant and often unpredictable changes, bringing forth uncertainties related to bilateral and multilateral financial institutions, trade policies, and the overall trajectory of global capitalism.”
He stated that it is imperative that Liberia takes proactive steps to shape its economic future as a small developing nation by leveraging its natural endowments, ensuring its investment incentives and fiscal policies are comprehensively reviewed, thoughtfully crafted, sustainable, and adaptable to the evolving circumstances.
“As we approach the expiration of specific incentives currently enjoyed by companies and anticipate the potential ratification of new investments during this 55th session of the Legislature, it is an opportune moment for us to engage in a comprehensive review of Liberia’s investment incentives.”
Senator Konneh expressed the hope that the review of tax incentives will help the country pinpoint areas for improvement, enhance compliance mechanisms, and optimize revenue generation, thereby securing the vital resources necessary for our national development, especially in light of the recent reductions in financial assistance from our international partners.
Senator Konneh added that it will be essential to bolster oversight within the National Bureau of Concessions to address any compliance gaps and ensure that concession agreements align with Liberia’s long-term fiscal and development goals.
The Plenary of the Liberian Senate has mandated its Committee on Investment and Concessions to scrutinize the communication from the Gbarpolu County lawmaker and report within two weeks.
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