On Saturday night, Prime Minister Hamza Abdi Barre, alongside the Minister of Finance and other senior government officials, held a crucial meeting with representatives of the Somali business community to discuss concerns surrounding the recent implementation of a digitalized Value Added Tax (VAT) on electronic and wallet transactions.
The meeting, which aimed to foster dialogue and address the apprehensions of merchants and business leaders, was marked by a mutual understanding of the importance of tax compliance for the nation’s economic future. During the discussions, both parties acknowledged the need for a robust tax system to support Somalia’s ambitions for self-reliance and development.
Prime Minister Barre assured the business community that the government is committed to addressing their concerns promptly. He emphasized that while the digitalized VAT is a critical step towards modernizing Somalia’s tax infrastructure, the government is open to feedback and willing to make adjustments to ensure the system’s smooth implementation.
“The government recognizes the pivotal role that the business community plays in our economy,” Prime Minister Barre stated. “We are here to listen to your concerns and to work together to find solutions that benefit both the state and the private sector.”
The introduction of the digital VAT, which applies to electronic payments and wallet transactions conducted by licensed merchants, is part of a broader initiative to improve tax collection and reduce reliance on foreign aid. However, its implementation has raised concerns among business owners about potential operational challenges and the impact on their businesses.
Finance Minister Bihi Iman Egal, who also attended the meeting, reiterated the government’s commitment to facilitating a transparent and efficient tax system. He assured the business representatives that their input would be considered in refining the VAT process to minimize any adverse effects on commerce.
