Traders Shut Parts of Mogadishu’s Bakara Market over Tax Dispute

GOOBJOOG NEWS | MOGADISHU: Major sections of Mogadishu’s Bakara Market remained closed on Tuesday after traders suspended business operations in protest against what they described as heavy new taxes imposed by Somalia’s federal government.

Shop owners and wholesalers in the country’s largest commercial market said they shut their businesses after recent measures introduced by the Finance Ministry increased financial pressure on traders already grappling with rising operating costs and weak consumer purchasing power.

Several traders told local media the new taxes could trigger higher food and commodity prices, worsening economic hardship for residents facing inflation and difficult living conditions.

Business owners also criticized the government for what they described as a lack of consultation with market representatives before the measures were introduced, saying the decision forced them to stage a commercial strike to demonstrate their opposition.

The closure disrupted commercial activity across parts of the capital, with residents reporting interruptions to retail and wholesale services normally provided through the sprawling market.

Bakara Market is Somalia’s biggest trading hub and plays a central role in the flow of imported goods, construction materials, electronics and food supplies across Mogadishu and other regions of the country.

The dispute comes as Somalia’s federal government intensifies domestic revenue collection efforts as part of broader economic reforms backed by international financial institutions following debt relief milestones reached in recent years.

The federal government has increasingly sought to expand the tax base and improve revenue systems to reduce dependence on foreign aid and strengthen public finances, though businesses have repeatedly raised concerns over taxation levels, enforcement methods and the fragile state of the private sector after decades of conflict and instability.

There was no immediate response from theFinance Ministry regarding the traders’ complaints, but calls have grown for negotiations between the government and business leaders to prevent further disruption to economic activity in the capital.