Cabinet today discussed and endorsed a new tax system for Somalia. The 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."