FGS New Digital Tax
- Thread starter Hilmaam
- Start date
More tuugsi from the goverment, now they want to steal the money straight from your wallet and not a single dime will come back to the average citizen. I wonder if the goverment in xamar will be able to steal money from someone in SSC or Jubbaland Or Puntland or SWS where they don't give a single dime to local infrastructure and still they will tax them anyway
He said it will be 5% but don’t think there was mention of regions and how it will be enforced. Tried to soften blow by saying neighbors pay 15-18%
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lol FGS can not tax outside Mogadishu
How much money will they generate from 5%?
Qoslaya family loot money from land selling and goverment budget. Now they want to steal normal southern citizen wallet
.pretty much every country taxes online purchases, europe has VAT varying from 17% to 27% australia has GST at 10% and so on but suddenly when fgs does it then its badQoslaya family loot money from land selling and goverment budget. Now they want to steal normal southern citizen wallet
why do you want somalia to stay in the dump so badly
WB, in 2018, estimated that mobile money transactions were about $2.7 billion a month in Somalia, so at 5% rate they can generate more than $1B a year, although after these taxes people will use it less often but since the Shilling is not used anymore, they can generate more from this source than all other revenue sources combined.
Many of these tax reforms were agreed upon by all federal parties long ago as a necessary change needed for budgetary aid to the FGS and FMS. This isn't something HSM thought up because he needs to finance a new Brabus super-luxury 8-door AI-controlled car. While the details are hazy, the more financially indepedent the FGS becomes, the more it can comfortable fight for what the Somali people want instead of being held hostage by donors.
The Somali economy, and I’m talking about all of it, needs massive growth. Taxes, in general, will simply be a hindrance. Income tax, which is the single largest tax most nations use to collect the bulk of state revenue, will inhibit work, exacerbate poverty, and make Somalia less attractive for outsourcing labor. On the other hand, we do not have a massive class of rich people we can tax (a wealth tax) to fill up our budget.
The only real way the government can shore up its revenue is by creating state-owned industries and using profits from those to fund the government. Since the fall of Siad Barre, no entity within Somalia, regional or federal, has really created an extensive state-owned corporation. For politicians, it's easier to just sell licenses, as that is quick and easy cash, compared to the decades-long process of creating competitive industries.
This is pretty much how the Chinese did it explicitly, and how the Japanese and Koreans did it behind the scenes. The latter two had the corporations be private but take direct orders from the government in return for support for their industries to grow ("Chaebol" and "Zaibatsus").
The Somali economy, and I’m talking about all of it, needs massive growth. Taxes, in general, will simply be a hindrance. Income tax, which is the single largest tax most nations use to collect the bulk of state revenue, will inhibit work, exacerbate poverty, and make Somalia less attractive for outsourcing labor. On the other hand, we do not have a massive class of rich people we can tax (a wealth tax) to fill up our budget.
The only real way the government can shore up its revenue is by creating state-owned industries and using profits from those to fund the government. Since the fall of Siad Barre, no entity within Somalia, regional or federal, has really created an extensive state-owned corporation. For politicians, it's easier to just sell licenses, as that is quick and easy cash, compared to the decades-long process of creating competitive industries.
This is pretty much how the Chinese did it explicitly, and how the Japanese and Koreans did it behind the scenes. The latter two had the corporations be private but take direct orders from the government in return for support for their industries to grow ("Chaebol" and "Zaibatsus").
Remember coming across a post by @Three Moons mentioning that figure.
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.
People find ways to complain about everything. No love lost for HSM and his corrupt administration but the country must continue to move forward and raising tax revenue is a key part of that. Hopefully this keeps the public more aware of how their money is spent and less docile since somalis seem to let their politicians get away with murder.
That was in 2018, the current monthly transaction figure is most likely double, if not triple that, so the FGS could potential raise between $2 billion and $3 billion from that industry alone. And since its traceable taxation, they can’t sweep it under a corrupt table without being caught in a future audit.
Imagine the Somali budget being boosted by an extra $3 billion? All of the things people have been asking for, from fighter jets, to commercial planes, new ports, new roads, dams, renewable energy, schools, hospitals, oil-rigs and residential projects would all be possible and bankrolled by Somalis themselves.
Digital Hawiye isbaaro.
That's all they need to focus on. The rest is 2nd tier priority
When they divide up the money between the ministries that's when the money will go missing. Next goverment needs to reinstitute the anti corruption committee and there needs to be a deep investigation of where every penny, nickel, dime and quarter from donors went during the this presidency
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