Executive Mansion, Monrovia– President Joseph Nyuma Boakai, Sr., has issued Executive Order No. 142, which suspends the Goods and Services Tax (GST) on international travel services and replaces it with a fixed levy on airline tickets for passengers departing Liberia.
The decision comes as part of the Government’s commitment to strengthening revenue mobilization while addressing the persistent challenges associated with the collection of GST on airline tickets, particularly those purchased online. The new measure aims to minimize revenue leakages, ensure a more transparent and efficient collection process, and sustain economic growth.
Key Provisions of Executive Order No. 142:
• Suspension of GST: The 10% GST previously imposed on the sale of international transport services (air, sea, and land), as well as services of travel agencies and ticket issuances, is hereby suspended.
• Introduction of Fixed Fees: A flat levy will now be imposed on each ticket sold for international travel, with details to be determined by the Ministry of Finance and Development Planning (MFDP) in consultation with the Liberia Revenue Authority (LRA).
• Collection and Remittance: Airlines, travel agencies, and other ticketing entities must collect the levy at the point of sale and remit proceeds to the LRA as per prescribed regulations.
• Enforcement and Compliance: The MFDP and LRA are mandated to ensure full implementation, with penalties for non-compliance under existing laws.
• Reporting: The LRA will submit regular reports on revenue performance to the MFDP to ensure transparency and accountability.
• Duration: The Order takes immediate effect and remains in force until further executive or legislative action.
President Boakai reaffirmed his administration’s dedication to sound financial governance and ensuring that government revenues are effectively managed for national development.
He called on all stakeholders to cooperate in implementing this new measure for the collective benefit of the country’s economy.
