Banks and telecom companies in Somalia will start paying VAT of 5 percent with effect from April 1, 2024.
This follows an announcement by the Ministry of Finance to this effect.
Bihi Egeh, the finance minister, announced the new tax measures on Saturday.
In his announcement, the new rate is not limited to telcos and banks alone. Instead, it applies to utility firms, TV cable companies, restaurants, and law firms.
Insurance agencies, healthcare providers, and private security companies will pay the new rate too.
Until today, the federal government has been collecting VAT only from importers, wholesalers, hotels, and manufacturers.