Lawmaker terms new tax selective, calls for nationwide implementation

Federal MP Mohamed Abukato has lashed out at the government for what he termed as selective taxation noting the newly introduced sales tax should not be confined to Banaadir.

Speaking hours after traders in Bakaro market dowedn their tools in response to the new taxes, Abukato said the government should have made the taxation nationwide.

“The Ministry of Finance is a ministry for the whole country. The taxes should be imposed uniformly across the country,” said Abukato.

The lawmaker also said since the taxes only affect Banaadir traders, proceeds from the taxation should be used to develop Banaadir alone. “I am suggesting that the sales tax to be allocated to BRA for development and public service.”

Bakaro market remained closed today in day one of the protest with traders pledging not to resume business until the government heeds to their grievances.

The government recently introduced a 5% sales tax on imports to be paid upfront as it seeks to boost domestic revenues in a bid to finance its national budget and cut down over-reliance on donor funding. However traders are up in arms complaining the taxes were adversely affecting their businesses. It also imposed a 5% value added tax for the hotel industry.