MOGADISHU, Somalia — In a move aimed at streamlining financial management and boosting economic efficiency, the Somali Cabinet has issued new regulations concerning taxes and national revenue.
The directive mandates that all government institutions use the Treasury Single Account (TSA) for managing revenue, taxes, and penalties.
The TSA, a unified structure for government bank accounts, is designed to enhance transparency, reduce the cost of maintaining multiple accounts, and improve the government’s ability to monitor and control public funds. This initiative is part of a broader effort to curb corruption and ensure that all financial transactions are recorded in a centralized system.
Additionally, in a significant relief for maritime trade, the Cabinet has decided to reduce the fee for the Port Access Permit from $110 to $40. This reduction is expected to facilitate easier access to ports for both local and international shipping companies, potentially increasing trade volumes and reducing costs for businesses.
The announcement was made following a recent Cabinet meeting where economic policies were reviewed to align with the government’s goals of economic recovery and growth. The reduction in port fees is seen as a strategic move to make Somalia’s ports more competitive in the region.
The implementation of these regulations is anticipated to have a ripple effect on the national economy, potentially attracting more foreign investment and fostering a more business-friendly environment. However, the success of these measures will largely depend on their effective enforcement and the government’s commitment to transparency in financial dealings.
This development comes at a time when Somalia is seeking to rebuild its economic infrastructure post-conflict, with international support being crucial for the implementation of such reforms. The international community has been encouraged to monitor these changes as part of their ongoing support for Somalia’s economic stabilization efforts.
