Published: November 13, 2026
MONROVIA — Integrity Watch Liberia (IWL) Executive Director Harold Marvin Aidoo has warned that ordinary Liberians, particularly market women, small business owners and low-income households, could bear the financial burden of the government’s projected 42.5% increase in tax revenue under the proposed US$1.54 billion national budget for fiscal year 2027.
Addressing a major news conference Thursday, at IWL’s headquarters in Monrovia, Aidoo challenged President Joseph Nyuma Boakai’s administration to explain how it intends to generate an additional US$319.8 million in tax revenue without placing greater financial pressure on vulnerable citizens.
His warning follows the submission of the proposed US$1.539 billion national budget to the Legislature for scrutiny and approval.
According to IWL’s independent gender-responsive budget assessment, projected tax revenue will increase from approximately US$752.72 million in the approved 2026 budget to US$1.072 billion in 2027.
“Our central question is: Who will bear the burden of generating this additional revenue?” Aidoo asked. “Will the increased revenue come primarily from improved compliance among large taxpayers, reduced leakages and better management of tax incentives? Or will ordinary consumers, market women, small businesses and low-income households experience additional financial pressure?”
Aidoo acknowledged the importance of domestic revenue mobilization but warned that proposed tax measures could disproportionately affect economically vulnerable citizens.
“However, we are concerned about the potential distributional consequences of such a substantial increase in projected tax collections,” he said.
The assessment identified several proposed revenue measures, including the transition from Goods and Services Tax to Value Added Tax, a minimum excise on digital financial services, property valuation reforms and enhanced customs controls.
Aidoo particularly expressed concern about additional taxation of mobile money transactions, which are widely used by market traders, rural households and small businesses.
“Any additional taxation of digital financial services must be carefully designed to avoid discouraging financial inclusion,” he warned.
Although the government has proposed VAT exemptions for rice and the continued exclusion of petroleum products, Aidoo said stronger safeguards are necessary.
The assessment also revealed that projected international trade tax revenue will increase by approximately 49.4%, from US$280.77 million in 2026 to US$419.39 million in 2027.
Aidoo cautioned that additional import-related costs, if passed on to consumers, could increase financial pressure on low-income households and small traders.
He clarified that the revenue projection does not necessarily mean import tax rates will increase by the same percentage.
Beyond taxation, Aidoo questioned the government’s commitment to gender-responsive budgeting, revealing that only 13 of the 122 spending entities covered by the proposed budget submitted gender-responsive budget statements, compared with nine in 2026.
He also disclosed that the Ministry of Gender, Children and Social Protection’s proposed allocation increased from US$4.06 million to US$7.09 million but represents only approximately 0.46% of the national budget.
Aidoo called for clearer financing commitments to maternal healthcare, girls’ education, prevention of sexual and gender-based violence, child protection and women’s economic empowerment.
He further demanded stronger mechanisms to track public spending and determine whether budgetary allocations produce measurable benefits.
“Budget allocations alone do not guarantee results,” he said. “Citizens must be able to determine how much money has been released, how much has been spent, where the resources have gone and who has benefited.”
Aidoo urged the Ministry of Finance and Development Planning and the Liberia Revenue Authority to conduct a comprehensive gender and poverty impact assessment of proposed tax measures before implementation.
He also called for stronger tax enforcement among large taxpayers, improved scrutiny of tax incentives and simplified compliance procedures for small businesses.
Aidoo also urged lawmakers to demand detailed explanations of the projected 42.5% tax revenue increase before approving the budget.
“The Legislature should seek a detailed breakdown of the assumptions underlying the projected increase, including the expected contribution from VAT, improved tax compliance, international trade taxes and other revenue measures,” he said.
He maintained that revenue mobilization must be assessed beyond the amount collected.
“The success of revenue mobilization cannot be measured solely by how much the Government collects. It must also be measured by who pays, whether the burden is fairly distributed and whether the resources collected improve people’s lives,” Aidoo said.
“Our message is clear: Liberia must raise revenue fairly, spend public resources equitably and demonstrate results that improve the lives of all citizens,’ he stressed.
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