Somalia lacks capacity to role out nationwide tax system-Finance Minister

Finance Minister Abdirahman Beileh said the government did not have the capacity to roll out a nationwide tax collection system. File Photo: courtesy

Lack of capacity and skills remains a major challenge to mobilizing domestic revenue collection, Finance Minister Abdirahman Beileh has said.

Beileh said the government was not in a position to put in place the infrastructure and resources to ensure a robust tax regime is instituted.

“We lack the capacity to put good systems across the nation. We do not have the ability to give everybody a tax identification number,” Beileh said in a media interview Sunday.

The Finance Minister noted however the government was working to overcome the challenges to enable it roll out a nationwide tax collection system.

“If you identify the challenge then you have the possibility of putting a stop to it and we are working on that”

The minister’s remarks come amid an ongoing boycott by traders in the country’s largest market-Bakaro over new sales tax. Under the new system, traders are compelled to pay a 5% sales tax to be paid upfront.

Traders who spoke to Goobjoog News said they will not resume business until the government addresses their grievances. Some shops opened in the morning in Bakaro but majority remain closed. The strike enters the third day tomorrow.