2nd quarter revenue underperformance in Puntland.

0117

Reborn
The attached document;


Puntland is the only federal state that produces regular financial reports.
The estimated revenue from April to June was $31,534,190 but the actual revenue collected was $22,588,523.
This is a deficit of $8,945,667.

The only revenue stream that was higher than the estimate was Payroll TAX (plus employee contribution) and Custom Tax.
This shows that the TSI system of taxation system that was implemented is actually working which is a very positive sign.
Perhaps if time gives it will increase other Tax streams like sales which are being tested in cities.
 
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the 3rd Quarter report will be interesting, they introduced a new tax in July (sales tax), in the 1st month they collected 450,000$ which represented 0.2% sales tax, and they will increase it gradually to 5%, if they collect this 5% tax the revenue from this tax alone will be 11,250,000$ monthly, 135 million per year.
 

Pwyneth Galtrow

💙☆💚
VIP
the 3rd Quarter report will be interesting, they introduced a new tax in July (sales tax), in the 1st month they collected 450,000$ which represented 0.2% sales tax, and they will increase it gradually to 5%, if they collect this 5% tax the revenue from this tax alone will be 11,250,000$ monthly, 135 million per year.

Sales tax is especially important to tackle the issue of IDP and foreign labourers sending money outside of the state, we need them to contribute to Puntland's economy and not just hoard their money and send it outside.
 
@Pwyneth Galtrow

What tangible results do you think can be gained by taxing people? There's not much money circulating in Somalia as it is and it's not like they get services for their tax like me and you would in the west.
 

Pwyneth Galtrow

💙☆💚
VIP
@Pwyneth Galtrow

What tangible results do you think can be gained by taxing people? There's not much money circulating in Somalia as it is and it's not like they get services for their tax like me and you would in the west.

How else will Puntland pay for infrastructure?

Thanks to the sales tax revenue, Puntland has announced a road rehabilitation project that costs 7.4 Million Dollars. See here:


4 roads will be rehabilitated:

Juurile to Boosaaso.
Qardho to Garoowe.
Garoowe to Birta dheer.
Garoowe to Falaryaale.
 

Pwyneth Galtrow

💙☆💚
VIP
I must admit I find it ballsy that Somali leaders tax people but good on PL if they do something with it.

Why is it ballsy? Taxation is the only thing that makes sense.

Somalia does not get money from extracting and selling Natural Resources, nor can we live on predatory loans from the international community or worse, get into debt slavery with countries like China who will try to seize our assets.

The only thing Puntland can and should do, is collect taxes and then funnel that into development projects, especially those that create jobs.

I do get your point about people being poor etc, but Somalia will stay poor and be known as an international begging bowl country, unless taxes are raised and are then distributed efficiently. Paying taxes is a necessary and patriotic duty.
 
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Why is it ballsy? Taxation is the only thing that makes sense.

Somalia does not get money from extracting and selling Natural Resources, nor can we live on predatory loans from the international community or worse, get into debt slavery with countries like China who will try to seize our assets.

The only thing Puntland can and should do, is collect taxes and then funnel that into development projects, especially those that create jobs.

I do get your point about people being poor etc, but Somalia will stay poor and be known as an international begging bowl country, unless taxes are raised and are then distributed efficiently. Paying taxes is a necessary and patriotic duty.

I 100% agree with you. Tax can get us out of this lack of money. Puntland is doing a good job, inshallah Galmudug will follow.

Benedir is rich. They already have a huge tax base system.
 
I find it ballsy because Somalis have a history of mismanagement and corruption, forget about us, Djibouti with its sovereignty are corrupt to the core. So I assumed that people in PL would reject taxes outright, but businesses I gather trust the ministry of finance.

But if Puntland could re-invest that money back into infrastructure, then good on them as they'd gain more then the tax the individuals/businesses gave out. But that's more of an exception than the rule. I'll always side eye Somalis and their tax schemes lol. I generally don't trust them lol
I know corruption is rife in Somalia, but since Puntland implemented the single treasury system the corruption decreased and the rate of catching irregularities increased, last week they froze 2 ministries accounts, I read somewhere when they automated the fee collection in Bosaso airport the revenue jumped 75%, and last year Puntland budget surplus was 7,000,000$, most of that money was spent on 3 ministries buildings and the state bank.
So if you want to limit corruption put your money in one place then monitor where every dollar goes, even then a somali will find a way to siphon some money but it will be much less than before.
Corruption Audit GIF by Transparency International
 
The attached document;


Puntland is the only federal state that produces regular financial reports.
The estimated revenue from April to June was $31,534,190 but the actual revenue collected was $22,588,523.
This is a deficit of $8,945,667.

The only revenue stream that was higher than the estimate was Payroll TAX (plus employee contribution) and Custom Tax.
This shows that the TSI system of taxation system that was implemented is actually working which is a very positive sign.
Perhaps if time gives it will increase other Tax streams like sales which are being tested in cities.

How does that compare to Somaliland regions?

Do you have any links to revenue collection in Maroodijeex, Togdheer or Saaxil for the same period?

Would be interesting to see revenue comparison between Saaxil and Puntland.
 

0117

Reborn
How does that compare to Somaliland regions?

Do you have any links to revenue collection in Maroodijeex, Togdheer or Saaxil for the same period?

Would be interesting to see revenue comparison between Saaxil and Puntland.

This thread is solely on this topic and nothing more including usless comparisons that would derail the thread.

I did make a SL thread

I'll make a comparison thread when they upload the 2nd quarter reports
 
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