A Double Burden: How the New VAT is Squeezing Somali Citizens Without Government Services
In recent years, Somalia has made significant strides toward rebuilding its economy and governance structures after decades of conflict. Yet, the introduction of a Value Added Tax (VAT) by the Somali government has ignited a wave of public discontent, primarily because of the absence of corresponding free public services. The new tax, implemented with the aim of raising revenue for the government, has left many Somalis questioning its fairness and purpose, particularly in a country where access to essential services is still limited. This blog explores the impact of the new VAT on Somali households, examining how the tax exacerbates existing economic challenges and the broader implications for public trust and social stability. The Introduction of VAT in Somalia In 2023, Somalia introduced a 5% VAT on goods and services, a move aimed at increasing government revenue to fund public services and infrastructure. However, this policy has been met with widespread criticism, as citizens argu