FGS New Digital Tax

[El Nino]

If the government want to tax 5 % on mobile money transactions, then here is what they have to provide:

-Fully funded 75,000 strong military force
-Fully funded 30,000 strong police force
-Free healthcare for all Somali citizens
-Free education for all Somali citizens

5% tax is not gonna cover this.

 

[Pastoralist]

For those of you saying it won’t go past south, the rest of the country will go where the job opportunities and money are. When AS is cleared south will easily be making the most tax revenue. Add the oil and our gdp may possibly cross the 3bil mark. Which is more than enough to secure south Somalia and move on to other regions. PL may not ever give up its separatism, jeegan are easier to convince.

 

[berberaboy66]

This is a good idea but I’m sick of the tuugnimo present in Somalia. I wouldn’t give any of my money to FGS until they explicitly state what their future policies are and how they are going to use the money. They never do that

 

[Step a side]

The mobile money companies operate in the country in three different geographical areas. Hormuud in the south starting from GM, Golis in PL and Telesom in SL. This means FGS will tax the south where Hormuud operates which includes Banadir, JL, SWS, GM, HS. Maybe PL/SL will introduce these taxes in their regions next.

All 3 companies (Hormuud, Golis, Telesom) are related.

 

[Garsoore]

All 3 companies (Hormuud, Golis, Telesom) are related.

View attachment 334358

If the FGS that's had a soft spot for Isaaqia actually goes on to tax Telesom...Lander Mass psychosis and mental breakdown on Twitter will be a sight to behold

 

[Periplus]

From an economics perspective, this is nacasnimo.

VAT/GST is a regressive tax, meaning it hurts poorer people more. This is because it taxes spending and since poorer people spend almost all their disposable income on surviving, the tax will hurt them more than someone that saves a lot of their disposable income.

Now, Western countries have this GST because it’s an effective tax to regulate and a decent money maker. However, for an impoverished African nation, it only harms income inequality statistics.

Basically keeping the poor, poorer.

 

[Periplus]

If the government want to tax 5 % on mobile money transactions, then here is what they have to provide:

-Fully funded 75,000 strong military force
-Fully funded 30,000 strong police force
-Free healthcare for all Somali citizens
-Free education for all Somali citizens

The best tax to cover the last two is cigarette and khat taxes. Personally, I would tax it at 200%, because their prices are way too low.

This will generate a crap ton of money and will also motivate people to not use these products as much.

Another effective tax is a land and property sale tax, attached to the value of the land and/or property. With all this real estate development, the government should take a cut from those that can afford to shell out big amounts.

 

[Interested]

All 3 companies (Hormuud, Golis, Telesom) are related.

View attachment 334358

I low key giggle at this ngl

 

[World]

5% tax is not gonna cover this.

Is not Christmas yet why are you putting out a wishlist that will never be fulfilled?

Do you think i believe tuug XSM would provide that? No, he would probably steal all of that money. But a 5 % tax is like $1.75 billion a year and any non corrupt government could provide all of those services or come close.

100k teachers + 30k police + 75k soldiers paid $200 a month = $492 million.

Education budget is 85 % teacher salary, so it would cost $36 million a year for maintenance of schools. Cost of police force outside of salaries is perhaps $72 million. Cost of military outside of salaries maybe $350 million including an intelligence agency.

Total $950 million.

Government can then buy 1 million tons of cereal/sorghum annually and build storage facilities to prevent famine, it would cost $300 million annually.

And then $500 million is left over for healthcare/other.

This is not including the costs to building all the education facilities, hospitals or training such a large amount of people. It would probably cost $500 million to build 100k classrooms for teachers, and $950 million to build and equip 150 hospitals, with a total of 30000 beds. But this would be obviously done over a few years and is a one time cost.

 

[Aiman12]

From an economics perspective, this is nacasnimo.

VAT/GST is a regressive tax, meaning it hurts poorer people more. This is because it taxes spending and since poorer people spend almost all their disposable income on surviving, the tax will hurt them more than someone that saves a lot of their disposable income.

Now, Western countries have this GST because it’s an effective tax to regulate and a decent money maker. However, for an impoverished African nation, it only harms income inequality statistics.

Basically keeping the poor, poorer.

5% wont kill people, most countries are above 10%

 

[World]

5% wont kill people, most countries are above 10%

Difference is Somalia is a cashless dollarized society.

 

[Soul Kaizer]

The government can’t do shit without taxes. Corruption is bad but that can be changed in the future with proper education and leadership.

 

[Periplus]

5% wont kill people, most countries are above 10%

Once again, they are richer countries.

It’s also not about whether it kills people or not but the govt has just made income inequality worse with one law.

There’s a million other things you can tax and btw Somalia already has VAT. This is a second one.

 

[Three Moons]

Once again, they are richer countries.

It’s also not about whether it kills people or not but the govt has just made income inequality worse with one law.

There’s a million other things you can tax and btw Somalia already has VAT. This is a second one.

Its $7.5 per person per month (out of an 18 million population) derived from a $2.7 billion monthly digital transaction volume (2018 figure, which is much higher today). That’s less than a meal at a Mogadishu restaurant every month, but for the FGS that’s an extra $135 million monthly revenue for the national budget, which could have a much bigger impact if it were to be utilised responsibly in the form of roads, security sector, healthcare, education, industrial parks and a societal safety net like Baxnaano.

Somalis as a people are probably one of the most undertaxed groups on the continent, and the average person hasn’t benefited from that situation at all.

 

[warside]

All 3 companies (Hormuud, Golis, Telesom) are related.

View attachment 334358

I know they're related and were known as Barakat before, but they don't operate as one company, so the 5% tax by FGS will not affect SL or PL unless they want to get in on this.

 

[Three Moons]

I know they're related and were known as Barakat before, but they don't operate as one company, so the 5% tax by FGS will not affect SL or PL unless they want to get in on this.

All Telecom companies in Somalia fall under the NCA, all of them registered before the deadline, and then signed an agreement with the FGS for countrywide interconnection, access to international roaming licenses, the continued use of the +252 country code, and so. Domains, and are also part of Somalia’s QR coded mobile payment system (SOMQR) established by the Central Bank.

 

[Periplus]

Its $7.5 per person per month (out of an 18 million population) derived from a $2.7 billion monthly digital transaction volume (2018 figure, which is much higher today). That’s less than a meal at a Mogadishu restaurant every month, but for the FGS that’s an extra $135 million monthly revenue for the national budget, which could have a much bigger impact if it were to be utilised responsibly in the form of roads, security sector, healthcare, education, industrial parks and a societal safety net like Baxnaano.

Somalis as a people are probably one of the most undertaxed groups on the continent, and the average person hasn’t benefited from that situation at all.

Once again, that’s well and good, but what is more important. This tax or exponentially worsening income inequality?

 

[Heavy Mountains]

Its $7.5 per person per month (out of an 18 million population) derived from a $2.7 billion monthly digital transaction volume (2018 figure, which is much higher today). That’s less than a meal at a Mogadishu restaurant every month, but for the FGS that’s an extra $135 million monthly revenue for the national budget, which could have a much bigger impact if it were to be utilised responsibly in the form of roads, security sector, healthcare, education, industrial parks and a societal safety net like Baxnaano.

Somalis as a people are probably one of the most undertaxed groups on the continent, and the average person hasn’t benefited from that situation at all.

There are families in Somalia that live on a tight budget. Some families don't send their children to school because they can't afford the tuition fees, which are usually $5 to $15 per month.

A 5% digital tax might not seem like much to people with disposable income, but it will be a burden to families that spend all of their income on basic necessities.

 

[Step a side]

I know they're related and were known as Barakat before, but they don't operate as one company, so the 5% tax by FGS will not affect SL or PL unless they want to get in on this.

Brother I am not sure how this tax stuff will be implemented but I do know that Hormuud is to Golis & Telesom what Google is to YouTube & Android. The 5% tax will be most likely implemented nationwide and not just in the south. As for Barakaat that company ceased to operate after it was listed by the US as a terrorist organisation shortly after 9/11.

All Telecom companies in Somalia fall under the NCA, all of them registered before the deadline, and then signed an agreement with the FGS for countrywide interconnection, access to international roaming licenses, the continued use of the +252 country code, and so. Domains, and are also part of Somalia’s QR coded mobile payment system (SOMQR) established by the Central Bank.

Yep and we can say goodbye to paper currency and hello cashless Somalia. They just introduced the first digital payment card.

 

[Thegoodshepherd]

@Three Moons @Step a side it does not matter who owns Golis, it is not going to be collecting any taxes in PL. If Golis were to begin levying a 5% tax that Siciid Deni has not signed off on, that is the last day they operate as a business.

I will never pay taxes to Hawiye.