The New Somali Government Endorses New Federal Tax System

Ridwaan Haji

Mogadishu (HAN) March 8th, 2014 Cabinet today discussed and endorsed a new tax system for Somalia. The Federal Minister of Finance Hussein Abdi Halane presented plans for the new tax system and tariff levels to Cabinet, these plans will now move forward to parliament for approval. The comprehensive new tax system comprises of both direct and indirect taxes on individuals and businesses. The plans detail tariff levels for income tax, property tax, corporate taxes and taxes on goods and services. Addressing Cabinet His Excellency Prime Minister Abdiweli Sheikh Ahmed, said:

“The Government of Somalia is committed to the continuing reform of our financial institutions and tax systems to increase the income of the state. The Minister of Finance has proposed a new tax system to ensure individuals and businesses are contributing their fair share to society and the rebuilding of our country.

“It is crucial that the government can raise its own revenue to be able to continue to improve security and roll out improved social services across Somalia. Up until now the state’s revenue has relied almost solely on customs collection from Mogadishu airport and port, we must broaden and in many cases introduce new taxes on sectors of our economy.

“The target of the next year is to raise enough revenue to vastly improve the capacity of the government to deliver for its own people and eventually become self-sufficient.”

Source: Office of the Somali Prime Minister
Ridwaan Haji, Federal Somalia Government Spokesperson

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  1. Lets shed light on the facts, the union between Somalia and Somaliland is illegal.

    A partnership/uni on is legal when both parties sign and make it a law.
    This was not the case of Somaliland and Somalia.

    When Somaliland constitution draft was sent to Mugdisho, the Mugdisho government ignored Somaliland proposal and instead came up with its own version. Without agreement from Hargeisa.

    How would one envisage a future cooperation when one denies the rights of the other? The further one denies ones will and right the greater the distance of trust and togetherness.

    Without mentioning the atrocities of the children of Somaliland, look at international definition of statehood, you will learn that Somaliland has right to justify its case 3 times:

    1: the union was illegal (why? Scroll up)

    2: Uti Posseditus (The right to govern captured lnd)

    3: the Montevideo charter

    If you disagree, I don’t blame you, knowledge is amazing go research it!