Somalia’s federal parliament is currently engaged in a heated debate over the government’s tax policies, with a significant number of legislators backing the administration’s goal of achieving self-sufficiency in income generation.
Legislators spent the best part of Monday debating the tax measures that the government intends to introduce. These include the 5 percent VAT on electronic and wallet transactions.
The government has made strides in increasing domestic revenue, but Somalia remains reliant on international donors and partners for budget support.
This reliance is a key issue driving the debate, as the government seeks to reduce dependency by enhancing its tax collection mechanisms and broadening the tax base.
However, concerns persist among some MPs about the potential impact of increased taxation on the public and the business community, especially given the fragile economic situation in the country.
The outcome of this debate could shape Somalia’s fiscal policies and its path toward economic independence.
