Puntland will move away from international aid

[DR OSMAN]

I think it's best to move from aid not just for obvious reasons such as no nation has become successful by relying on aid and left the poverty trap, not a single nation. Every aid dependent country is a shit hole. So that's one obvious reason.

The other reason is you can be more sovereign and independent in your local and foreign policies. The third reason is there is better local ownership when people feel they own a project. Final reason is national pride when a govt can rely on his own people not rely on the scraps or left overs from another country, this creates immense pride.

The other thing I noticed also is when a society is fully aid driven, they usually get only small amount of aid because there nothing they can say since they can't execute their own projects.

However when you start to see a society being able to execute their own project even if aid comes it will need to beat it by a good margin in terms of scale or else the govt will be like we can already do billion dollar projects and U come to offer us 50 million project this increases that ummah aid quota compared to another area that can't execute a single local project.

Stop surviving of an another ummah jeebkooda, this should be taught to all of them.

 

[Man with a garuun]

If Puntland introduces two forms of taxation which, to my knowledge, they don't currently do, I think they will not need foreign aid:

1) Introduce sales tax on consumers. Right now, the PL govt collects its revenues from tariffs on imports and exports through seaports, airports, and dry ports; taxes collected from businesses; and property taxes collected from property owners. The govt leaves huge resources in consumers' pockets. They need to impose taxes on every item bought by the consumer in Puntland. Hundreds of millions USD could easily be raised through this tax scheme if it is efficiently carried out;

2) Diaspora tax. The Puntland diaspora in East and Southern Africa, in North America, the UK, the EU, the Middle East, and Australia/New Zealand is the largest of the Somali diaspora. A Diaspora tax that is calculated to be 2% of their income would generate huge resources for the govt.

The Eritrean government currently collects this diaspora tax, and it comes down to an average of 300 million USD annually. Puntland could emulate such a model.

 

[Zob]

No way this will happen the whole reason Puntland was created was to try and get their own aid.

 

[FBIsomalia]

If Puntland introduces two forms of taxation which, to my knowledge, they don't currently do, I think they will not need foreign aid:

1) Introduce sales tax on consumers. Right now, the PL govt collects its revenues from tariffs on imports and exports through seaports, airports, and dry ports; taxes collected from businesses; and property taxes collected from property owners. The govt leaves huge resources in consumers' pockets. They need to impose taxes on every item bought by the consumer in Puntland. Hundreds of millions USD could easily be raised through this tax scheme if it is efficiently carried out;

2) Diaspora tax. The Puntland diaspora in East and Southern Africa, in North America, the UK, the EU, the Middle East, and Australia/New Zealand is the largest of the Somali diaspora. A Diaspora tax that is calculated to be 2% of their income would generate huge resources for the govt.

The Eritrean government currently collects this diaspora tax, and it comes down to an average of 300 million USD annually. Puntland could emulate such a model.

Already PL implement sales tax.

 

[Man with a garuun]

Already PL implement sales tax.

Sales tax from consumers? That is a news I did not have. Bro, can you details which items they tax? If sales tax is collected from consumers, screw the foreign aid.

 

[FBIsomalia]

Sales tax from consumers? That is a news I did not have. Bro, can you details which items they tax? If sales tax is collected from consumers, screw the foreign aid.

Its been implemented since Gaas time, percentage I think 10% above bill.

You can ask @DR OSMAN about it.

 

[FBIsomalia]

 

[𐒁𐒚𐒒𐒂𐒘𐒂𐒗 𐒎𐒚𐒗𐒗𐒒]

Remember this topic ? In 2021, Puntland announced that we would move towards self-sufficiency by 2025. We are right on track

PUNTLAND - Puntland Modern Taxation System & Central Bank

Puntland is one of the first government to use the TSI system of taxation in the African continent. https://tsico.com/about-tsi/industries-served/government/

www.somalispot.com

I made this post in 2021

Allahu Akbar!! This is the greatest news to come out of Puntland since its birth in 1998!



I made detailed notes for you guys about this amazing new Financial Management system!

Puntland has spend has been working on The Financial Management Information System (FMS)- with the World Bank. Puntland is the first state in Somalia to adopt the treasury single account!


Previous System

• There were problems with unpaid/late salaries in addition to excessive off-budget government spending.
• Civil servants used to line up to collect hard copies of payment slips
• They were also unable to track the large amount of money that was coming into the state.
• They also used NGO’s to funnel funding to the government because there was no trust in the old financial management system!
• The previous yearly budgets also didn’t include Puntland’s Economic Development Programme.

The New System

• The system has increased transparency in revenues and government spending and timely payments of civil servants ( who will be paid directly into their bank accounts and they can request their salary using the FMS system online)
• Salaries are signed by relevant officials to ensure the expenditure is in line with the budget
• Most importantly, this RESTORES TRUST OF DONOR PROJECTS
• The FMS provides a framework for transparency in finance management.
• Government accounts will be unified under the treasury single account to strengthen oversight on domestic and external revenues
• It is now easier to observe bank reserves and curb inflation, oversee public procurements and contracts
• All incoming/outgoing money can be scrutinised and audited by the parliament and audit teams.
• They also modernised the tax collection system which allows them to judge someone’s income and then calculate how much tax they have to pay.
• Tax collectors will be using the new software to collect tax and they have been trained on how to do this.