MONROVIA, LIBERIA-President Joseph Boakai has issued Executive Order # 157, exempting the Liberia Electricity Corporation (LEC) from the payment of customs duties and Goods and Services Tax on electricity generation, transmission, and distribution equipment, materials, and fuel.
The Executive Order aims at addressing the urgent need to reduce fuel and operational costs in order to sustain the provision of electricity to the Liberian people at reasonable and affordable rates.
An Executive Mansion release says the LEC continues to confront significant external pressure that has driven up operational expenses, particularly in procurement, delivery, storage, and utilization of fossil fuels, notably Heavy Fuel Oil.
These escalating costs present serious challenges to the Corporation’s ability to maintain stable electricity tariffs while advancing its efforts to expand hydroelectric generation, especially at the Mount Coffee Hydroelectric Facility.
The release noted that the President has recognized that the imposition of customs duties, and GST on essential petroleum products and electricity-related equipment constitutes a volatile cost factor that could further strain LEC’s financial position and lead to higher electricity prices for consumers.
Executive Order #157 highlights the government’s intent to strengthen the operational and financial efficiency of the LEC, while supporting the transition toward increased reliance on hydroelectric power, and protecting the public from unnecessary tariff escalation.
