Mogadishu (PP News Desk) — At a ceremony for a new association of Somali banks held last week in Mogadishu, President Hassan Sheikh Mohamud warned traders who ignore procedures for applying sales tax on transactions. “It has come to our attention that certain businesses conduct transactions via the EVC system instead of the merchant account mandated by the sales tax policy. Any business found guilty of bypassing the rules will face consequences for flouting them,” said President Mohamud.
The Federal Finance Ministry has deployed plainclothes revenue protection officers who impersonate customers to ensure that businesses use the merchant account to charge sales tax at the point of sale.
At Bakara Market, the Puntland Post correspondent observed traders scrambling to deposit money into their merchant accounts to avoid being investigated for tax evasion.
Federal tax revenues have risen since the inception of a fiscal policy aimed at enhancing the tax collection capabilities of the Finance Ministry. This development is seen by donor countries as remarkable progress in state-building initiatives in the Federal Republic of Somalia. The Federal Member States are expected to follow suit by implementing transparent tax collection policies to access budgetary support and development aid.
© Puntland Post, 2024
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