domestic revenue collection increases in somalia

[New World]

How does Tax work in Somalia and how are funds collected?


Garoweonline has published an article discussing recent increases in Somalia's revenue collection.

https://www.garoweonline.com/en/news/somalia/domestic-revenue-collection-increases-in-somalia

 

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So far, the international community has covered the difference between government expenditures and revenue through grants from the World Bank.

These grants will end in July 2025 and will turn into loans.

Read through the report:

Somalia Financial Governance Report 2023 | Ministry of Finance - Somalia

mof.gov.so

FGS must cover its expenses with revenue. This means revenue will need to increase by $250 million, which is unlikely. This also explains the current constitution reform, which will empower FGS to tax all ports in Somalia, which would, in theory, significantly boost revenue.