The Finance Minister of the Federal Government of Somalia has warned foreign firms operating in Halane, the African Union camp in Mogadishu who have been evading taxes at all costs.
The Ministry on Thursday announced new strict rules on taxation on 157 firms, mostly foreign-owned ad sheltered by African Union.
The ministry estimates the country loses billions of dollars as the 157 companies evaded taxes by hiding under humanitarian cover.
In a meeting with the CEOs and managers of the firms, officials from the ministers of finance, air transportation, trade and departments of taxes and security were given instructions of the rules of the taxation.
The ministry warned the 157 firms, among them are supplies and logistics companies contracted by United Nations and African Union Mission in Somalia (AMISOM) who never cleared taxes.
“We have evidence of importation of goods and commodities into the country without payment of taxes or under disguise of taxes relief. We have warned them. This is unacceptable.” Said Finance Minister Adirahman Dualeh Beyleh.
Alongside the Minister was the Deputy Minister Hayir Ibrahim who noted that nobody was above the law.
— Abdirahman O. Osman (@engyarisow) July 6, 2017
“Any firm or entity found breaching our taxes laws will be held accountable.” he added.
Goods and commodities into the country without payment of taxes or under disguise of taxes relief.
The move was not new the ears of Somalis. Years ago, former Mogadishu Mayor blasted the invasion of foreign companies and employees into the country by hiding under AMISOM and United Nations and taking over jobs locals could do.
The invasion of the foreign workers and contracted agents resulted unneeded competition against Somali-owned businesses and jobs bringing another burden to the economy, a move the government now says wants to tackle.