(13-07-24) MOGADISHU (Halqabsi News) –In a press conference held in Mogadishu, Somali Finance Minister Bihi Iman Egeh announced the federal government’s plan to implement the nation’s first-ever sales tax. The tax, set at 5%, is part of a broader strategy to increase domestic revenue and achieve economic self-sufficiency for Somalia.
Minister Egeh revealed that this long-awaited initiative has been finalized and communicated to telecommunication companies and remittance agencies. “I want to share with the Somali people and businesses, especially telecommunication and remittance service providers, that a modern system, which the Ministry of Finance has been developing, will be implemented,” he stated.
The new system will enable the government to collect sales taxes electronically on all transactions. “This system will allow the Ministry to collect taxes electronically on any purchase or sale made through this platform,” Egeh explained.
The Minister urged telecommunication companies and banks to cooperate with the Ministry of Finance to ensure the revenue department fulfils its obligations. “I want to urge telecommunication companies to fully support the revenue department and its technical staff in carrying out their duties,” he emphasized.
Egeh further clarified that the 5% sales tax aligns with the rates in neighbouring countries. “As mandated by law, the current sales tax is 5%, which is comparable to the rates in our region.”
This announcement has sparked significant concern and discussion on social media, as the tax will impact everyone making electronic purchases, particularly those using EVC Plus, eDahab, or other wallet services.
Halqabsi News
