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    Sudan army shells disputed border with Ethiopia

    Sudan army shells disputed border with Ethiopia

    Fighting erupts after Al-Shabaab attacks Kenyan military base in Lower Juba

    Fighting erupts after Al-Shabaab attacks Kenyan military base in Lower Juba

    Heavy fighting ongoing in Mataban as troops launch assault on Al-Shabaab

    Heavy fighting ongoing in Mataban as troops launch assault on Al-Shabaab

    Four killed, three injured, including 2 journalists as vehicle hits landmine in Mataban

    Four killed, three injured, including 2 journalists as vehicle hits landmine in Mataban

    Somalis are ready to liberate their country but they lack the leadership to mid-wife the liberation

    New Somali government should open talks with Al-Shabaab-Crisis Group

  • Parliament
    Parliamentary Election Committee to hold its first meeting

    Parliament to hold crucial joint meeting today

    Parliament approves Hamze Abdi Barre as Somalia’s 21st Prime Minister

    Parliament approves Hamze Abdi Barre as Somalia’s 21st Prime Minister

    Congratulations pour in for the newly elected Somali Prime Minister

    Somali parliament to hold vote of confidence on Prime Minister Hamza Abdi Barre

    Upper House approves 5-member constitutional Commission

    Upper House approves 5-member constitutional Commission

    Somali leaders welcome election of Adan Madobe as Lower House speaker

    Speaker forced to postpone session as Parliament yet again fails to reach quorum

  • Education
    PM Roble flags off secondary school leaving exams for thousands of learners

    PM Roble flags off secondary school leaving exams for thousands of learners

    USAID announces $6.8M initiative to increase access to education in Somalia

    USAID announces $6.8M initiative to increase access to education in Somalia

    Hungary offers to absorb Somali students affected by war in Ukraine

    Hungary offers to absorb Somali students affected by war in Ukraine

    U.S funded basic literacy programme to reach 35,000 children in Somalia

    U.S funded basic literacy programme to reach 35,000 children in Somalia

    Somalia Graduate Survey: Students shun teaching and vocational careers

    Somalia Graduate Survey: Students shun teaching and vocational careers

  • Humanitarian Affairs
    Somali government delivers food aid to Gedo region on Independence Day

    Somali government delivers food aid to Gedo region on Independence Day

    World Bank approves close to $ 150 million to help vulnerable Somalis

    World Bank approves close to $ 150 million to help vulnerable Somalis

    On the brink of famine: Somalia’s Humanitarian Coordinator witnesses acute malnutrition,calls for action

    On the brink of famine: Somalia’s Humanitarian Coordinator witnesses acute malnutrition,calls for action

    Ending polio in Somalia: children vaccinated in national immunization day

    Ending polio in Somalia: children vaccinated in national immunization day

    As rains fail again, catastrophic hunger looms over Somalia

    As rains fail again, catastrophic hunger looms over Somalia

  • Diaspora Voices
    Saudi government donates food aid to thousands of families in Somalia

    Saudi government donates food aid to Somalia

    Mogadishu Port Remains Closed Over Tariff Dispute

    Former Somali lawmaker involved in Mogadishu twin explosions

    World expresses solidarity with Somalia after attack

    Somali soldiers allegedly tortured former MP

    Somali soldiers allegedly tortured former MP

    NUSOJ impasse deepens as ILO recognises Farouk as Secretary General

    NUSOJ impasse deepens as ILO recognises Farouk as Secretary General

  • Business
    U.S. donates close to 300,000 COVID-19 doses to Somalia

    U.S. donates close to 300,000 COVID-19 doses to Somalia

    Why the Benadir market fire was ignored

    Why the Benadir market fire was ignored

    Somalia seeks three-month extension of its IMF support programme

    Somalia seeks three-month extension of its IMF support programme

    Somalia asks Coastline Exploration for documents on PSA signing for probe

    Somalia asks Coastline Exploration for documents on PSA signing for probe

    Opinion: Could Somalia become the next Texas?

    PSA CONUNDRUM: Roble, Farmaajo were ‘supportive’, Coastline Exploration ‘perplexed’

  • Science & Tech
    Banaadir Hospital gets major upgrade from Chinese government

    Banaadir Hospital gets major upgrade from Chinese government

    Opinion: Could Somalia become the next Texas?

    PSA CONUNDRUM: Roble, Farmaajo were ‘supportive’, Coastline Exploration ‘perplexed’

    Controvery in Somalia as gov’t COVID-19 Twitter handle used to spread political messages

    Controvery in Somalia as gov’t COVID-19 Twitter handle used to spread political messages

    HIV infections on a steady decline in Somalia-WHO

    HIV infections on a steady decline in Somalia-WHO

    Yellow fever outbreak kills 21 in Congo, WHO says

    Researchers detect malaria resistant to key drug in Africa

  • Opinion
    Reform, reform, reform. How President Mohamud can cement his legacy

    Reform, reform, reform. How President Mohamud can cement his legacy

    Africa’s new harvest: sustainable development by innovation for transformation

    Africa’s new harvest: sustainable development by innovation for transformation

    OP-ED: Somalia’s women must succeed for Somalia to succeed

    OP-ED: Somalia’s women must succeed for Somalia to succeed

    Two political associations strike coalition deal to counter Deni’s KAAH in Puntland

    Puntland Local Government Elections: Revitalizing the democratic aspirations of Somalia

    The time to act on climate change is now – COP26

    The time to act on climate change is now – COP26

    ANALYSIS: Yasin’s NSC path on Ikran ‘murder’ contempt for PM and end of story

    ANALYSIS: Yasin’s NSC path on Ikran ‘murder’ contempt for PM and end of story

    Study: “Politics and mistrust” blamed for Somalia’s fiscal federalism deadlock

    Study: “Politics and mistrust” blamed for Somalia’s fiscal federalism deadlock

    EXCLUSIVE: Turkey skipped OIC meeting in Mogadishu over Somalia’s stance in Khashoggi crisis

    The Africa we strive for is possible in unity and solidarity

    OP-ED: Soil is the solution

    OP-ED: Soil is the solution

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      Sudan army shells disputed border with Ethiopia

      Sudan army shells disputed border with Ethiopia

      Fighting erupts after Al-Shabaab attacks Kenyan military base in Lower Juba

      Fighting erupts after Al-Shabaab attacks Kenyan military base in Lower Juba

      Heavy fighting ongoing in Mataban as troops launch assault on Al-Shabaab

      Heavy fighting ongoing in Mataban as troops launch assault on Al-Shabaab

      Four killed, three injured, including 2 journalists as vehicle hits landmine in Mataban

      Four killed, three injured, including 2 journalists as vehicle hits landmine in Mataban

      Somalis are ready to liberate their country but they lack the leadership to mid-wife the liberation

      New Somali government should open talks with Al-Shabaab-Crisis Group

    • Parliament
      Parliamentary Election Committee to hold its first meeting

      Parliament to hold crucial joint meeting today

      Parliament approves Hamze Abdi Barre as Somalia’s 21st Prime Minister

      Parliament approves Hamze Abdi Barre as Somalia’s 21st Prime Minister

      Congratulations pour in for the newly elected Somali Prime Minister

      Somali parliament to hold vote of confidence on Prime Minister Hamza Abdi Barre

      Upper House approves 5-member constitutional Commission

      Upper House approves 5-member constitutional Commission

      Somali leaders welcome election of Adan Madobe as Lower House speaker

      Speaker forced to postpone session as Parliament yet again fails to reach quorum

    • Education
      PM Roble flags off secondary school leaving exams for thousands of learners

      PM Roble flags off secondary school leaving exams for thousands of learners

      USAID announces $6.8M initiative to increase access to education in Somalia

      USAID announces $6.8M initiative to increase access to education in Somalia

      Hungary offers to absorb Somali students affected by war in Ukraine

      Hungary offers to absorb Somali students affected by war in Ukraine

      U.S funded basic literacy programme to reach 35,000 children in Somalia

      U.S funded basic literacy programme to reach 35,000 children in Somalia

      Somalia Graduate Survey: Students shun teaching and vocational careers

      Somalia Graduate Survey: Students shun teaching and vocational careers

    • Humanitarian Affairs
      Somali government delivers food aid to Gedo region on Independence Day

      Somali government delivers food aid to Gedo region on Independence Day

      World Bank approves close to $ 150 million to help vulnerable Somalis

      World Bank approves close to $ 150 million to help vulnerable Somalis

      On the brink of famine: Somalia’s Humanitarian Coordinator witnesses acute malnutrition,calls for action

      On the brink of famine: Somalia’s Humanitarian Coordinator witnesses acute malnutrition,calls for action

      Ending polio in Somalia: children vaccinated in national immunization day

      Ending polio in Somalia: children vaccinated in national immunization day

      As rains fail again, catastrophic hunger looms over Somalia

      As rains fail again, catastrophic hunger looms over Somalia

    • Diaspora Voices
      Saudi government donates food aid to thousands of families in Somalia

      Saudi government donates food aid to Somalia

      Mogadishu Port Remains Closed Over Tariff Dispute

      Former Somali lawmaker involved in Mogadishu twin explosions

      World expresses solidarity with Somalia after attack

      Somali soldiers allegedly tortured former MP

      Somali soldiers allegedly tortured former MP

      NUSOJ impasse deepens as ILO recognises Farouk as Secretary General

      NUSOJ impasse deepens as ILO recognises Farouk as Secretary General

    • Business
      U.S. donates close to 300,000 COVID-19 doses to Somalia

      U.S. donates close to 300,000 COVID-19 doses to Somalia

      Why the Benadir market fire was ignored

      Why the Benadir market fire was ignored

      Somalia seeks three-month extension of its IMF support programme

      Somalia seeks three-month extension of its IMF support programme

      Somalia asks Coastline Exploration for documents on PSA signing for probe

      Somalia asks Coastline Exploration for documents on PSA signing for probe

      Opinion: Could Somalia become the next Texas?

      PSA CONUNDRUM: Roble, Farmaajo were ‘supportive’, Coastline Exploration ‘perplexed’

    • Science & Tech
      Banaadir Hospital gets major upgrade from Chinese government

      Banaadir Hospital gets major upgrade from Chinese government

      Opinion: Could Somalia become the next Texas?

      PSA CONUNDRUM: Roble, Farmaajo were ‘supportive’, Coastline Exploration ‘perplexed’

      Controvery in Somalia as gov’t COVID-19 Twitter handle used to spread political messages

      Controvery in Somalia as gov’t COVID-19 Twitter handle used to spread political messages

      HIV infections on a steady decline in Somalia-WHO

      HIV infections on a steady decline in Somalia-WHO

      Yellow fever outbreak kills 21 in Congo, WHO says

      Researchers detect malaria resistant to key drug in Africa

    • Opinion
      Reform, reform, reform. How President Mohamud can cement his legacy

      Reform, reform, reform. How President Mohamud can cement his legacy

      Africa’s new harvest: sustainable development by innovation for transformation

      Africa’s new harvest: sustainable development by innovation for transformation

      OP-ED: Somalia’s women must succeed for Somalia to succeed

      OP-ED: Somalia’s women must succeed for Somalia to succeed

      Two political associations strike coalition deal to counter Deni’s KAAH in Puntland

      Puntland Local Government Elections: Revitalizing the democratic aspirations of Somalia

      The time to act on climate change is now – COP26

      The time to act on climate change is now – COP26

      ANALYSIS: Yasin’s NSC path on Ikran ‘murder’ contempt for PM and end of story

      ANALYSIS: Yasin’s NSC path on Ikran ‘murder’ contempt for PM and end of story

      Study: “Politics and mistrust” blamed for Somalia’s fiscal federalism deadlock

      Study: “Politics and mistrust” blamed for Somalia’s fiscal federalism deadlock

      EXCLUSIVE: Turkey skipped OIC meeting in Mogadishu over Somalia’s stance in Khashoggi crisis

      The Africa we strive for is possible in unity and solidarity

      OP-ED: Soil is the solution

      OP-ED: Soil is the solution

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      World Bank: Tax reform critical to sustainable growth

      Wednesday August 2, 2017
      in Business, Featured, featured, National News
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      The government must demonstrate clear links between tax revenue and service delivery, including security provision.

      The World Bank recommends widening the tax bracket and a range of tax spectrum to increase domestic revenue. File Photo: Goobjoog News

      Somalia must institute robust domestic revenue mobilization reforms in the short and long term to implement the National Development Plan and achieve sustained economic growth, the World Bank has said warning in the absence of such reforms ‘the country could remain in a fiscal trap’.

      In its second Economic Update released Tuesday, themed Mobilising Domestic Revenue to Rebuild Somalia, the Bank said Somalia’s overreliance on foreign aid and limited domestic market support stifles sustainable growth noting ‘threats to any of these sources will affect Somalia’s growth prospects’.

      Punitive tax

      The Bank however cautioned against punitive tax measures as it would counter growth especially in the private sector and foreign investment. “To support sustainable expenditures, drive development and reduce reliance on external sources, the FGS (Federal Government of Somalia) will need to find ways to increase domestic revenue in a way that does not disincentivize the private sector,” the report said.

      The Bank said Somalia’s tax revenue which in 2016 was just over 2% of the GDP (The value of a country’s overall output of goods and services -typically during one fiscal year- at market prices, excluding net income from abroad) is remarkably low noting sustained tax reforms could raise this figure to 13% in 2022. While significant, this would still leave Somalia at the lower level of revenue performance in low income countries.

      RELATED: Drought has cost Somalia $1.7 billion in livestock and crop loss-World Bank

      Somalia’s tax revenue as percentage of GDP in 2015 stood at 1.9 way below Sub-Saharan Africa average which stood at 17.9% in the same period. Afghanistan and Burundi recorded 10.1% and 10.3% in the same period respectively according the World Bank.

      Service delivery

      To actualize an increase in domestic revenue, the Bank says, the government must demonstrate clear links between tax revenue and service delivery, including security provision. The government must create confidence among citizens that their taxes would not be misappropriated.

      An overhaul of the tax system is also critical to mobilizing revenue collection, the Bank advises. This will involve designing it in a way that is consistent with its desire to limit its role to activities and services it can perform better. “The tax system should not be a constraint on private sector growth and development.”

      Tax reform

      The report, a second one since the first in 2015 proposes a raft of short, medium and long term reform strategies critical to enhancing domestic revenue mobilization. In the short term, the government should impose a uniform value based tax import (as opposed to the current volume based) rate of 5-8%, an export tax as a temporary measure which include 5% on livestock exports, fish fruits and vegetables, introduce a 10-50% excise tax on khat, cigarettes, gasoline among others.

      Currently, the government only imposes an import tax on khat, cigarettes and gasoline which in the 2017 fiscal budget range from $3 per kilogram for khat to between $6 and $24 for various cigarette brands. A ton of gasoline attracts a $56.25 import tax while a barrel of diesel is taxed $11.25.

      Tax base

      Widening the tax base to include wages and business income can also be effected in the short term, the Bank says. This includes increasing coverage of direct taxes to cover wages and business income from all private and public sector employees. Private sector employees in Somalia currently remain largely out of the tax bracket forcing the government to rely on public servants as the main income tax source.

      Other measures include 5-10% tax on airtime by phone companies, 0.5-1.0% on value of remittances which could earn the government an estimated $13 million while an increase of visa fee to $100 could net the tax man $10 million annually, the report notes. Currently the visa fee is $60. Finance Minister Abdirahman Beyle announced a $20 departure fee for all passengers starting July this year in the 2017 Appropriations Act.

      RELATED: World Bank to launch 2nd Economic Update on Somalia today

      The medium term should see simplified tax system, harmonization of rates, increased tax rates, legislative measures on regulation and taxation of natural resource and strengthening fiscal federalism. In the long term, the Bank proposes a consolidation, harmonization and consistent tax legislation amendments as policy measures.

      Administratively, long term measures should encompass the creation of tax payer database, completion of staff recruitment to entrench reforms and expansion of tax collection throughout the country.

       

       

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