Monday August 26, 2024
Mogadishu (HOL) — Former Somali President Sheikh Sharif Sheikh Ahmed convened a meeting on Sunday with members of the Federal Parliament representing the Hawiye clan at his residence in Mogadishu to address pressing political, economic, and security issues affecting the country, particularly the challenges faced by Mogadishu's business community.
During the meeting, the lawmakers and Sheikh Ahmed discussed the recent complaints from local people in business regarding the federal government's tax policies and the persistent threats posed by the al-Shabab militant group.
The conversation centred around finding viable solutions to the increased taxation obligation on businesses and the ongoing security risks, which recent incidents of violence have exacerbated.
The discussion comes in the wake of last week's devastating attack on the Safa and Marwa market in the Elasha Biyaha neighbourhood, where al-Shabab militants set off a series of explosions that destroyed numerous businesses after traders complying with a government directive to install CCTV cameras.
People in business have expressed frustration over the new 5% sales tax implemented on August 18, which is automatically deducted from business accounts at the point of sale. At the same time, President Hassan Sheikh Mohamud has framed the tax as a necessary update to the existing system.
Jubbaland's Ministry of Finance has publicly rejected the federal government's tax measure, urging local businesses to continue operating under the region's own tax laws established last year. Jubbaland officials argue that the federal tax was imposed without proper consultation.