Somaliland: State Bans Tax Waiver, Accuses Unscrupulous Tycoons of Exploitation


Somaliland sun- Laws guiding waiver of revenue to organizations, businesses and individuals have to be reinforced to seal loopholes that are being exploited by unscrupulous people in the country/

This was stated by president Muse Bihi Abdi in a decree in which he repealed the tax waivers for companies after widespread abuses, as he revealed that “revenue collections in the country has fallen after rampant abuses of the tax waiver”.

In the presidential decree # RSL/XM/WM/222-186/082018 that canceled the much abused waiver of taxes on some businesses the Somaliland head of state also informed that “new law that will categorize tax waiver for organization and business will soon be in place to stop tax evasion”.

The presidential decree # RSL/XM/WM/222-186/082018 originally in Somali language below as translated by Solnanews

Press Release

                                                   Somaliland President Muse Bihi Bans Tax Exemption

The president said from today henceforth:

  1. Government ministries and institutions have no power whatsoever to waiver taxes for any individuals.
  2. Tax waiver should follow article 136,145 and 163 of the customs laws of Somaliland.
  3. The companies which have been exempted from paying import tax will have to pay for income tax, sale tax and profit tax.
  4. The ministry of finance will come up with a model system of tax collections that will seal loopholes which are being abused.
  5. The government will promote the country industrialization process by deduction of import tax of companies trying to establish factories. They companies should liaise with the ministry of commerce, industry and tourism to state the type of industry they want to create.
  6. Companies wishing to set factory in Somaliland will be eligible for $250,000 custom import duty waiver and should employ at least 30 people.
  7. Raw material will be exempted from tax for three years. The government also orders that raw materials that could be found locally needs not to be imported.