FGS New Digital Tax

[Periplus]

@Three Moons @Step a side it does not matter who owns Golis, it is not going to be collecting any taxes in PL. If Golis were to begin levying a 5% tax that Siciid Deni has not signed off on, that is the last day they operate as a business.

In the event that taxied are levied, I doubt Deni would shut down Golis. The economy will essentially collapse.

Forget people losing access to their savings, no one will be able to make calls or access the internet, there is no other viable network in PL.

Also, no other company in PL (except Amal) has the capital to start a telecommunications company that can fill the gap left by Golis.

 

[warside]

Brother I am not sure how this tax stuff will be implemented but I do know that Hormuud is to Golis & Telesom what Google is to YouTube & Android. The 5% tax will be most likely implemented nationwide and not just in the south. As for Barakaat that company ceased to operate after it was listed by the US as a terrorist organisation shortly after 9/11.


Yep and we can say goodbye to paper currency and hello cashless Somalia. They just introduced the first digital payment card.

They were one company as Barakat, but now they operate as sister companies, and Jimcaale is the biggest shareholder in each, but they operate as distinct companies and that's why when shabaab forced Hormuud to stop mobile payments it didn't affect PL/SL and when FGS ordered companies to ban tiktok they didn't follow that order.

 

[warside]

In the event that taxied are levied, I doubt Deni would shut down Golis. The economy will essentially collapse.

Forget people losing access to their savings, no one will be able to make calls or access the internet, there is no other viable network in PL.

Also, no other company in PL (except Amal) has the capital to start a telecommunications company that can fill the gap left by Golis.

Golis doesn't give sales tax to Mogadishu but to Garowe, why would they start now? If the 5% mobile money becomes common, Golis will hand the money to PL.

 

[Periplus]

Golis doesn't give sales tax to Mogadishu but to Garowe, why would they start now? If the 5% mobile money becomes common, Golis will hand the money to PL.

I started the sentence with “if”. I was describing that if that scenario happened, the PL govt wouldn’t just shut the company down.

 

[World]

@Three Moons @Step a side it does not matter who owns Golis, it is not going to be collecting any taxes in PL. If Golis were to begin levying a 5% tax that Siciid Deni has not signed off on, that is the last day they operate as a business.

I will never pay taxes to Hawiye.

Golis doesn't give sales tax to Mogadishu but to Garowe, why would they start now? If the 5% mobile money becomes common, Golis will hand the money to PL.

I think every federal state should keep this revenue for themselves.

Let the FGS have Benadir for themselves.

 

[Three Moons]

There are families in Somalia that live on a tight budget. Some families don't send their children to school because they can't afford the tuition fees, which are usually $5 to $15 per month.

A 5% digital tax might not seem like much to people with disposable income, but it will be a burden to families that spend all of their income on basic necessities.

They are on a tight budget because they are paying extortionist rates for their electricity, high prices for products at the average shop due to expensive imports, and have low-income jobs that aren’t secure. These families wouldn’t have to worry about their children’s education if the government had the means to increase the amount of public schools, build new hospitals and industrial parks to manufacture basic products.

Also, the families in question that you are referring to wouldn’t be the ones paying $5 or $15 a month, not even close. That $7.5 figure was a national per capita average, but in truth there are many individuals with an income of several thousand dollars a month, and individuals with an income with a couple hundred a month, so their contributions would differ.

The well-off men and women paying $50 or $100 a month, or the major companies paying millions a month (after the introduction of the tax) would be the ones lifting the low-income families out of poverty with the delivery of basic services and goods by the Government. What the low-income families loose in digital tax they would see return multifold in the most basic and important necessities.

Besides, the digital tax dates back to 1984, and would have been in play for decades if the war hadn’t happened.

 

[Three Moons]

@Three Moons @Step a side it does not matter who owns Golis, it is not going to be collecting any taxes in PL. If Golis were to begin levying a 5% tax that Siciid Deni has not signed off on, that is the last day they operate as a business.

I will never pay taxes to Hawiye.

This is beyond the scope of regional governments, and like the Shipping Code or the Air Space, Telecommunications is a sovereign domain, and to access international banking, transaction licenses, swift codes, satellites, country codes and domains, all companies have to go through the FGS, which is why they registered before the deadline in 2021.

Its not a good idea to shut anything down, for example when one sea cable was accidentally cut by a ship a few years back, Somalia was losing $10 million a day, a significant part of that figure would have come from Puntland. That figure today is much higher, and so would be the loss in the scenario of a shut down. This would be political suicide for Deni.

The paper work for the digital tax’s foundations are decades old and predates any clan-state or clan-leader, and will benefit future generations when sanity has returned in Somalia. This is bigger than any specific clan or leader.

 

[Step a side]

They were one company as Barakat, but now they operate as sister companies, and Jimcaale is the biggest shareholder in each, but they operate as distinct companies and that's why when shabaab forced Hormuud to stop mobile payments it didn't affect PL/SL and when FGS ordered companies to ban tiktok they didn't follow that order.

Whether the tax will even happen in the first place is debatable. Property tax collection in xamar right now is rife with embezzlement. It’s not a coincidence the new tax program has been proposed now. Remember the summer parliament session is going to decree revenue sharing between fed member states. Now hsm has solid forecast figures to entice them all to agree. Even pl might come back to the table. With puntland there might not be any forcing necessary. They could agree to a tax revenue sharing/ collection deal.

Al barakaat is finished now. It was a hawalad system in the 90s but it’s all gone. Hormuud isn’t barakat it’s an entirely new company. Same for golis and telesom. They come under hormuud with the same technology and team. Just different names to bypass tribal conflicts. The one golden rule in Somalia is qabil never should affect business. So their boards were filled with men from that area to push it forward to those regions. Isaaqs were brought along on the telesom team to make it kick off in somaliland etc. Jimcaale was branded a terrorist. He even speaks about it in recent interviews how his funds were frozen. Founding hormuud takes money he had almost nothing at that time.

 

[dal10]

This is not good, first we need a competent government. This is not a government

 

[dal10]

A successful government dosent need taxes, the rich countries need it to pay off debt. We need minor taxes

 

[dal10]

Whether the tax will even happen in the first place is debatable. Property tax collection in xamar right now is rife with embezzlement. It’s not a coincidence the new tax program has been proposed now. Remember the summer parliament session is going to decree revenue sharing between fed member states. Now hsm has solid forecast figures to entice them all to agree. Even pl might come back to the table. With puntland there might not be any forcing necessary. They could agree to a tax revenue sharing/ collection deal.

Al barakaat is finished now. It was a hawalad system in the 90s but it’s all gone. Hormuud isn’t barakat it’s an entirely new company. Same for golis and telesom. They come under hormuud with the same technology and team. Just different names to bypass tribal conflicts. The one golden rule in Somalia is qabil never should affect business. So their boards were filled with men from that area to push it forward to those regions. Isaaqs were brought along on the telesom team to make it kick off in somaliland etc. Jimcaale was branded a terrorist. He even speaks about it in recent interviews how his funds were frozen. Founding hormuud takes money he had almost nothing at that time.

First paragraph is sad asf Wallhi this goverment and every part of somalia is failed failed

 

[geeljre49]

Video explains the tax in detail, who it is going to effect and which parts of the country it will be implemented.

 

[Step a side]

Mp Faiza stood up for the poor of Banaadir getting taxed unjustly. She also touched on the FGS holding secret meetings with shabaab at 6:30. Over 200+ members representing fgs are having talks with shabaab without notifying the parliament @Pastoralist

 

[Saintz]

Mp Faiza stood up for the poor of Banaadir getting taxed unjustly. She also touched on the FGS holding secret meetings with shabaab at 6:30. Over 200+ members representing fgs are having talks with shabaab without notifying the parliament @Pastoralist

When was that session? And what day is she talking about?

 

[Step a side]

When was that session? And what day is she talking about?

This was today I believe. She is a living legend.

x.com

x.com

 

[Pastoralist]

Mp Faiza stood up for the poor of Banaadir getting taxed unjustly. She also touched on the FGS holding secret meetings with shabaab at 6:30. Over 200+ members representing fgs are having talks with shabaab without notifying the parliament @Pastoralist

Reer xamar getting taxed and experiencing the worst of the government while not even having their safety guaranteed. Taxes when AS still holds presence in the capital. Something good lies at the end of the talks with AS, so good to hear some more weight on that. The Mp wouldn’t just confidently share rumours as true if they weren’t. At the very least, FGS and AS are communicating.

 

[geeljre49]

Sales tax at 5% rate starting 18th August. This will bring in $1 billion+ in revenue for the government.

 

[Aiman12]

Sales tax at 5% rate starting 18th August. This will bring in $1 billion+ in revenue for the government.

View attachment 339085

not a good idea to rely only on taxes for revenue

 

[Pastoralist]

Sales tax at 5% rate starting 18th August. This will bring in $1 billion+ in revenue for the government.

View attachment 339085

All this money should go into creating hundred thousand jobs in benaadir/xamar.

 

[Nin123]

Sales tax at 5% rate starting 18th August. This will bring in $1 billion+ in revenue for the government.

View attachment 339085

Remember that Somalia ranked first in corruption how much of this money will end up missing?