Puntland Taxation Systems Needs A Reform

[DR OSMAN]

It's time Puntites stop sitting there and just reporting on PL successes while ignoring areas to improve. It's time we as the diaspora suggest ideas to PL government on how to implement a fully comprehensive taxation system to ensure all the people and entities in PL are paying their fair share.

Right now our taxation revenue is mainly from property, vehicle registration, business, custom points(road, air, sea) and recently they announced some mobile tax system. But what about if we introduce a 'GST' which is what Australia has, it's 10% value added tax on all transactions in the market place, the only things exempt are(milk, bread, vegetables), however the rest of the items are taxed at 10% of the goods price. This would increase PL taxation revenue but I haven't seen anyone discuss how we can roll it out.

I also think another good taxation stream would be income tax, employees of companies be it local or foreign need to pay their fair-share to PL govt, we need a comprehensive employee taxation branch within the department of finance that focuses on collecting all employees income. I prefer they follow the australian model which is based on income brackets, depending on your earning in the financial year.

What other ideas you suggest we should use to increase our taxation revenue?

 

[DR OSMAN]

My other suggestion is we need to become the banking headquarters of east africa. We need to attract bankers to dump their money into PL banks and offer them great returns but this can only happen if we have a local population who is using banking services and getting loans, the investors will not come if they're is no demand for the service.

This will kick-start a whole new stream of entrepeneurs in our land who will create jobs thru their business ideas. What do u say puntites? I mean think about it, we will have a new industry basically from this and we can begin measuring how it grows each year.

People think the hope is foreign investment or diaspora, I say the hope is the locals, it's a huge un-tapped pool who only needs access to banks to secure loans to kick-start their own economy, I hate foreign investment becuz your relying on others to build your nation and this creates an un-equal society with high end foreigners and diaspora and dead weight locals.

 

[BobSmoke]

My other suggestion is we need to become the banking headquarters of east africa. We need to attract bankers to dump their money into PL banks and offer them great returns but this can only happen if we have a local population who is using banking services and getting loans, the investors will not come if they're is no demand for the service.

This will kick-start a whole new stream of entrepeneurs in our land who will create jobs thru their business ideas. What do u say puntites? I mean think about it, we will have a new industry basically from this and we can begin measuring how it grows each year.

People think the hope is foreign investment or diaspora, I say the hope is the locals, it's a huge un-tapped pool who only needs access to banks to secure loans to kick-start their own economy, I hate foreign investment becuz your relying on others to build your nation and this creates an un-equal society with high end foreigners and diaspora and dead weight locals.

I can see the banks offer great return if they invest on programs in vital sectors like agriculture and infrastructure, education, basically investing in making livelihoods.

That might work if the bankers are also business-savvy that can envision a solid repeatable blueprint of "chain of supply".
From facilitating the condition to make raw material, processing, the logistics, the marketing, the replacement of imported goods, and create excess to be able to export.
There are many machineries, vehicles and facilities that will require a lot of manpower and we got plenty of dirtpoor people willing to have a stable type of life. The products being made in Somalia has to be affordable to the locals.

Kinda how the Chinese government invested in making manufacturing more efficient and focus on value adding to bring variety to the locals and AliBaBa was responsible to boost the export sector tremendously and it created a lot of jobs that are being handled by middlemen.

But just throwing money on people that don't know how to handle money is not a smart move. The banks should also ally themselves with the schools on creating a more money-savvy population.
If they see that, the diaspora would flood the banks with ayuuto money.

We can't also give too much power to the banks. And the relationship between the banks and the government has to be strict. It can't give power to the politicians to just print as money as they desire.

There have to be a set of rules and harsh punishments to those that violate it.

For that to happen, there has to be a wider behavioral change. This is an idealistic idea and we know how somalis generally operate. They will cut corners in any way shape of form with no sense of self-accountability. It's not just a poverty thing, it's a widespread illness of mind we are suffering from

Just my 2 cents

 

[DR OSMAN]

I can see the banks offer great return if they invest on programs in vital sectors like agriculture and infrastructure, education, basically investing in making livelihoods.

That might work if the bankers are also business-savvy that can envision a solid repeatable blueprint of "chain of supply".
From facilitating the condition to make raw material, processing, the logistics, the marketing, the replacement of imported goods, and create excess to be able to export.
There are many machineries, vehicles and facilities that will require a lot of manpower and we got plenty of dirtpoor people willing to have a stable type of life. The products being made in Somalia has to be affordable to the locals.

Kinda how the Chinese government invested in making manufacturing more efficient and focus on value adding to bring variety to the locals and AliBaBa was responsible to boost the export sector tremendously and it created a lot of jobs that are being handled by middlemen.

But just throwing money on people that don't know how to handle money is not a smart move. The banks should also ally themselves with the schools on creating a more money-savvy population.
If they see that, the diaspora would flood the banks with ayuuto money.

We can't also give too much power to the banks. And the relationship between the banks and the government has to be strict. It can't give power to the politicians to just print as money as they desire.

There have to be a set of rules and harsh punishments to those that violate it.

For that to happen, there has to be a wider behavioral change. This is an idealistic idea and we know how somalis generally operate. They will cut corners in any way shape of form with no sense of self-accountability. It's not just a poverty thing, it's a widespread illness of mind we are suffering from

Just my 2 cents

My idea was for banks to tap into our unemployed locals who are Entrepeneurs and have a business proposal. By having banks facilitate the cash injections into their business proposals, it can lead to a boom in people becoming business men and women and thru this it will create a huge employee base also.

Each Bank of course has their own procedures and their risk matrix on loans and they can follow whatever is best practises like (collateral) or a proven income stream to pay the debt on time. I think we should ask the chinese to dump funds into Puntland Banking companies and establish a local puntite and foreigner partnership to tap into our locals potential.

Maybe the banking sector your thinking about is 'infrastructure' based ones which will require country to country to manage, I am referring to growing our business sector by adding more locals rather then diaspora.

 

[BobSmoke]

My idea was for banks to tap into our unemployed locals who are Entrepeneurs and have a business proposal. By having banks facilitate the cash injections into their business proposals, it can lead to a boom in people becoming business men and women and thru this it will create a huge employee base also.

Each Bank of course has their own procedures and their risk matrix on loans and they can follow whatever is best practises like (collateral) or a proven income stream to pay the debt on time. I think we should ask the chinese to dump funds into Puntland Banking companies and establish a local puntite and foreigner partnership to tap into our locals potential.

Maybe the banking sector your thinking about is 'infrastructure' based ones which will require country to country to manage, I am referring to growing our business sector by adding more locals rather then diaspora.

I wasn't opposing your idea. I was just adding a likkle remix.

Your suggestions are thought provoking still