Somaliland’s Parliament to debate new Khat tax bill amid controlling inflation

[Deeq A.]

By Ahmed Abdi

Hargeisa— (Somaliland Informer) Somaliland’s Second Deputy-Speaker of the Senate said on Tuesday that the parliament will debate on a new legislation to raise taxes on Khat amid controlling inflation.

Inflation, tribal infighting, and border skirmishes, among other things, have challenged president Muse Bihi Abdi’s new government.

Somaliland government recently imposed heavy taxes on Khat dealers as part of its endeavors to tackle rising food prices and basic commodities.The decision angered Somaliland’s Khat entrepreneurs who expressed their concerns to the authority.

The new government says the move will allow Khat dealers to increase the price of Khat in Somaliland for decreasing consumption and discouraging young users of the Khat to quit it.

“The increases in the price of Khat in Somaliland will result in a reduction in inflation and government’s decision to raise Khat taxes by up to 50 percent will be debated on a new bill for the upcoming session,” said Dr. Ali Yusuf Ahmed Somaliland’s Second Deputy-Speaker of the Senate.

“We will work with the government to end the inflation.”

Dr. Ahmed said the money will go to the hospitals in a bid to help its victims overcome the troubles caused by it.

Somaliland has three political parties that are divided into tribal lines and the recent clashes at Dararweyne village in El-Afweyne district of Sanaag region challenged Somaliland’s security.