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Over the years, civil society organisations such as Integrity Watch Liberia (IWL) have been at the forefront of efforts to influence national fiscal policies and ensure that public resources are allocated effectively for the benefit of citizens.
In an interview, Senator Francis Dopoh, Member of the Finance and Budget Committee, credited CSOs led by IWL for driving Liberia’s 2025 budget increase to $880 million, up from $738 million in 2024. IWL used focused advocacy to spotlight hidden revenue opportunities, push tax reforms, and channel funds toward healthcare, education, and infrastructure. In partnership with parliamentary committees, IWL conducted key research on revenue losses in quarrying, sand mining, and the extractive sector’s tax incentives.
Their findings exposed massive tax leakages, including under-reported sales and revenue-losing tax waivers. One study led to the House of Representatives rejecting a questionable mining contract, and another reversed a $19 million tax waiver previously granted to a mining firm.
This evidence-based advocacy also helped increase national revenue from $611 million in 2023 to $691 million by early 2024. With support from MPs from the African Parliamentary Network on Illicit Financial Flows and Taxation (APNIFFT), a platform established by TJNA that seeks to bring together members of parliament committed to fighting IFFs, IWL helped identify $90 million in potential new revenue. This analysis directly contributed an additional $46.46 million to the 2024 budget, raising it to $738.9 million.
The evidence-based research on the Revenue Potential of Quarrying and Sand Mining in Liberia detailed analysis of the untapped revenue potential in sand mining, highlighting opportunities to optimise domestic resource mobilisation while ensuring environmental sustainability. The research revealed a disparity in operational scales and revenue generation. It highlighted that discrepancies exist between actual and potential revenue, noting collection efficiencies such as under-declaration of sales, thus leading to uncollected taxes. Additionally, the research on the Challenges posed by Tax Incentives in The Extractive Sector showed that tax incentives/ exemptions compromise the adoption of a simple, fair, transparent, and efficient tax system. These tax incentives complicate the tax system by creating inequalities, reducing production efficiency, and leading to a loss of tax revenue that could have been used in financing education, health, and social protection, among others.
IWL gathered compelling evidence, which was presented to key decision-makers, including the Legislature's Budget Committee, highlighting these potential sources of revenue; IWL also provided a clear case for where resources could be obtained to increase the national budget to support critical public sectors.
This work demonstrated the transformative power of civil society in shaping public policy and advancing national development goals. It was also a powerful testament to the impact of targeted advocacy, showcasing how evidence-based research and strategic engagement with policymakers can reshape a nation's fiscal priorities.
In addition to the budget increase, the General Auditing Commission (GAC) has begun an investigation into the legal framework governing Liberia's sand and quarry mining sectors. This investigation will assess potential gaps in regulation that may have contributed to revenue losses from these sectors. By calling attention to this issue, IWL has helped ensure that the government takes a closer look at how these resources are managed and whether improvements are needed to maximize revenue collection.
This focus on sand mining and multinational tax incentives is part of a broader advocacy effort by IWL to reform Liberia's fiscal policy and ensure that its natural resources are managed in a way that benefits Liberians.
The increase in the national budget is part of IWL's broader efforts under the Scaling Up Tax Justice (SCUT) project. This initiative, active in several African countries, including Liberia, aims to influence at least 20 policies and laws by 2025. The project focuses on curbing illicit financial flows, enhancing tax revenue mobilization, and strengthening social contracts between governments and citizens. Through SCUT, IWL continues to lead advocacy activities that promote tax justice, transparency, and fair tax policies, which are crucial for improving domestic resource mobilization (DRM) and promoting equitable tax systems in Liberia.
In 2023, IWL successfully led the campaign to cancel a harmful tax agreement between the Fouani Brothers and the Liberian government. The controversial deal, which threatened tax revenues and smallholder farmers, was vetoed by President George Weah in December 2023 following IWL's advocacy efforts with investigative journalists and the Liberia APNIFFT caucus. This victory preserved vital tax revenues and highlighted the impact of collective action in protecting Liberia's financial interests.
As part of the ongoing efforts to improve Liberia's fiscal policy, IWL is also refining several critical public interest bills designed to enhance domestic revenue mobilization and address systemic inefficiencies in Liberia's tax system.
In October 2024, IWL, in collaboration with the APNIFFT Caucus, hosted a stakeholder dialogue to discuss six key bills. These bills focused on improving tax policy, curbing illicit financial flows, and promoting greater financial transparency. IWL's advocacy work, along with the participation of key stakeholders, is crucial in ensuring that these reforms align with Liberia's long-term development goals and contribute to a more equitable tax system.
A group of senators has introduced the proposed reforms in the legislature. These include amendments to the personal income tax structure to reduce the burden on low-income earners and ensure fairer contributions across the tax system. The reforms also propose decentralizing property tax collection to empower local governments and improve local revenue generation. Additionally, the reforms aim to regulate rental prices to ensure affordable housing and improve tenant-landlord relationships. At the same time, the Demurrage Income Tax Amendment Act seeks to boost Liberia's competitiveness in international trade.
One of the most impactful proposed reforms is the Export Proceeds Repatriation Act, which aims to ensure the timely repatriation of export proceeds to Liberia. This legislation stimulates local investment and promotes economic growth by ensuring that Liberia's export revenues are returned to the country. This will help stabilize the national economy and encourage more local investment.
In addition, the National Civic Education Commission Act is another significant reform proposed by IWL that seeks to enhance public engagement and promote active citizenship. By fostering greater awareness of civic duties and rights, this legislation aims to strengthen Liberia's democratic processes and encourage broader public participation in governance.
Through these ongoing efforts, IWL is helping shape the country's fiscal future, promoting transparency, accountability, and financial sustainability for all Liberians. It will maintain its collaboration with key stakeholders, including government institutions, civil society organizations (CSOs), business associations, concession companies, and student groups, to advocate for tax reforms that ensure strong enforcement mechanisms and foster a commitment to a transparent and equitable tax system.
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For more information about the SCUT project, please contact Ishmael Zulu at izulu[@]taxjusticeafrica.net