Liberian Tax Administrators Undergo VAT Technical Training

To ensure the effective achievement of program objectives and to introduce the Value Added Tax (VAT) reform in Liberia, the Economic Community of West African States (ECOWAS) has kickoff a four-day technical training for tax administrators in the Country.

The training, which runs from April 15 to 18, 2024, brought together several tax administrators from the Liberia Revenue Authority (LRA) and the Ministry of Finance and Development Planning (MFDP), under the Tax Transition Program of ECOWAS with funding from the European Union.

The ongoing training is organized in collaboration with the Ministry of Finance, LRA, UEMOA and Programme d’ Appui à la Transition Fiscale en Afrique de l'Ouest, respectively.

ECOWAS Resident and Tax Consultant to Liberia, Munyentwali Gadi, who spoke during the opening of the training, said the objective of the training is to pass on information on the content of Liberia's VAT law, as well as international best practices related to effective and efficient VAT administration.

"So, the training is very crucial for us as tax practitioners and we need to be very attentive because it is purely technical with a lot of applications," he said while admonishing the participants.

Gadi assured the participants that, from his experience, Liberia will have one of the best VAT laws in the sub-region when fully passed by the National Legislature.

According to him, the VAT training is also in preparation for tax administrators ahead of the passage of the VAT Law by the National Legislature.

Gadi further counted on the support of the Liberian government through the LRA and Ministry of Finance for the cordial working relationship in ensuring VAT becomes a reality.

Earlier, Margaret P. Krote, Assistant Commissioner for the Large Tax Division at the Liberia Revenue Authority (LRA), who delivered a stirring address on behalf of her boss, Darlingston Y. Talery, at the commencement of a week-long training session for tax administrators focused on Value Added Tax (VAT) implementation.

Her speech exuded gratitude, emphasized the importance of capacity building, and underscored the significance of VAT readiness.

She said, "Welcome esteemed colleagues to yet another crucial training workshop on Value Added Tax (VAT) implementation. Your presence here today is a testament to your dedication and commitment to enhancing your skills, despite the demanding workload back at the office. I applaud each and every one of you for making this sacrifice."

Krote addressed a common question among attendees: Why another VAT training session so soon after the last? She clarified, "The frequency of these training underscores our unwavering commitment to excel in VAT implementation. We aim to be fully prepared from day one, ensuring a smooth transition when the VAT Law is enacted by the National Legislature and signed by the President."

Highlighting the necessity of capacity building and public awareness, Krote stated, "Seamless VAT implementation in Liberia hinges upon the expertise of analysts and policymakers, as well as sustained public awareness. This training serves as a critical step towards achieving these objectives."

Krote acknowledged the extensive public consultations conducted by the Government of Liberia, incorporating feedback into the VAT Bill. "The voices of our citizens have been heard, shaping the legislation we have today," she affirmed.

Transitioning to the essence of VAT, Krote explained, "VAT represents a significant departure from our previous Goods and Service Tax regime. It is a comprehensive, multi-stage tax on consumption, with proven potential to bolster revenue in countries where it's implemented."

Throughout the training, Krote assured attendees of engaging discussions, interactive sessions, and practical case studies aimed at enhancing their knowledge and equipping them with the necessary tools to navigate VAT challenges and leverage its benefits effectively.

Expressing optimism about the impending VAT implementation, Krote shared insights into ongoing discussions with the National Legislature. "We've actively engaged with lawmakers to expedite the passage of the VAT Bill, highlighting its importance in unlocking budgetary allocations for 2024," she disclosed.

Krote acknowledged the Economic Community of West African States (ECOWAS) for their unwavering support. "ECOWAS, through its Support Tax Transition Program, has been instrumental in facilitating this training and providing invaluable resources for VAT implementation," she acknowledged.

Concluding her remarks, the LRA Assistant Commissioner for the Large Tax Division expressed confidence in the attendees' ability to empower the LRA for seamless VAT implementation, stating, "It is our fervent hope that the knowledge gained here will empower us to effectively implement VAT, ushering in a new era of fiscal responsibility and economic growth for Liberia."