SSC-Khatumo Strengthens Revenue Collection Frameworks

[Deeq A.]

Abdiqani Hirad, the SSCK Finance Minister.

Laascaanood (PP News Desk) — The Ministry of Finance of the SSC-Khatumo Interim Administration in Somalia has introduced revenue collection systems. These systems include customs duties and inland taxes aimed to lay foundations for the delivery of services by the administration. Customs duties are levied on Khat imports from Kenya, on goods from Ethiopia and Puntland State of Somalia.

Measures have been taken to include VAT/POS, payroll taxes, construction levies and other charges such as vehicle and merchant registration fees in the inland revenue collection system. This expansion constitutes a key part of the SSCK administration policy to consolidate its presence in SSCK districts and villages to increase its tax base and enable it to better commit resources to essential operations.

According to a briefing by SSCK Finance Ministry, an app-based tax collection system aimed at simplifying the process for businesses and employees alike is in the pipeline. With Somalia’s heavy reliance on mobile money, the SSC-Khatumo Administration has effectively leveraged this system for revenue collection capabilities despite the pitfalls caused by the lack of harmonisation in tax systems across Somalia’s Federal Member States.

Key to attaining those goals is the finalisation of the 2025 Budget for a self-financing administration dependent on local revenue collection and contributions from SSCK diaspora. The SSCK Finance Ministry plans to publish critical economic statistics and fiscal policy reports, and will establish a Financial Information Management System (FIMS) crucial for mobilising additional revenue sources to support the SSCK administration.

© Puntland Post, 2024.

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