Somali President warns traders against tax evasion via merchant number changes

Monday September 30, 2024

Mogadishu (HOL) — Somali President Hassan Sheikh Mohamud has warned traders attempting to evade the newly introduced sales tax by changing their merchant numbers.

Speaking in Mogadishu on Thursday, President Mohamud emphasized that such actions would not go unpunished. “Anyone hiding from paying taxes is committing fraud,” said President Mohamud.

“If you evade paying taxes, it is theft and a crime, and you will be held accountable. Changing merchant numbers to avoid tax payments is not acceptable. The people are paying the tax and you are facilitators. The taxes fund essential social services and security.”

President Mohamud commended Somali businessmen for their contributions to the country’s development but urged them to fulfill their tax obligations, which are critical to the functioning of the government.

“The government is about regulation and law enforcement, and to sustain that, taxes must be paid. I commend the banks and telecommunications institutions but call on all businesspeople to comply with the tax system and respect the laws established to govern it,” he added .

President Mohamud’s warning follows reports that some traders had changed their merchant numbers after the government introduced the 5% sales tax, which took effect on August 18, 2024. The new tax is automatically deducted from business accounts at the point of sale.