Government Revenue in Somalia

Currently the government of Somalia collects less revenue which is not enough to meet the countries needs. At present, the central government in Mogadishu collects approximately $84 million per year

The revenue sources include

Taxes on seaports

Taxes on airports

Therefore the country relies on direct support from foreign governments as well as local and international non-governmental organisations as the tax base is very narrow.

Non-tax revenue

Fines

Fees

Grants and gifts

Challenges with collecting revenue in Somalia

  • The government is in the process of asserting its authority and building capacity to enforce its laws
  • Somali government has not yet established an efficient structure to collect revenue
  • Inadequate record keeping by the tax authorities
  • Over relying on international donors to fund
  • Corruption by tax officers
  • Government is in the process of curbing corruption
  • Lack of transparency in the usage of taxes

 

Contact Us

https://www.facebook.com/fortuneofafrica