June 07, 2023 {MoF} – On May 30, 2023, a delegation from the Somaliland Ministry of Finance went on a study-tour to Addis Ababa, the capital of our neighboring country of Ethiopia. The members of the delegation, which included officials and employees of the Departments of Inland-Revenue and Technology {IT& FMIS} and led by the Director of the Inland Revenue Department Mr. Mohamed Ibrahim Batun, the purpose of their trip was to learn more about how the internal tax management system of the Ministry of Revenue of Ethiopia works, especially the indirect taxes on the sales of the services and goods, since the implementation of this tax system new in Somaliland.
The Ministry of Revenue of Ethiopia, which broadcasted the news about the delegation’s trip on its social media page, said that the two sides have had fruitful meetings so far, where they have exchanged their experiences.
The Ministry of Finance Development of Republic of Somaliland has good relations with its counterparts in African countries when it comes to exchange of knowledge and experience sharing on financial management activities.
It is worth noting that on August 8, 2022, a high-level delegation from the Republic of Sierra-Leon in West Africa arrived in Somaliland on a study-tour. The delegation who were consisted of 33 members was led by the Director General of the Ministry of Finance Sierra Leone Mr. Samuel E. B. Momoh, who have been involved in various sectors of the country’s finance. The purpose of their trip was to learn about the use of the Financial Management Information System {FMIS} an automated system, which Somaliland admired for its implementation as it has been implemented well, and now all the Government Ministries, Agencies and Departments use for payment of expenses and collection of revenue.
Although the legality of sales tax on goods and services is stipulated the Inland Revenue Act No. 72/2016, which was approved by the House of Representatives in 2016, the Ministry has started to fully implement this tax by the late of 2021. To obtain a secure tax account the Somaliland Ministry of Finance has started to use an electronic user-friendly device for the collection of the sales tax which is called Electronic Fiscal Device {EFD}, and in the first time was installed in large hotels, and the machine produces an invoice with the tax due on the sales made by the hotel, which is a very low rate of 5% (Five percentage only). The first phase of the project was started in the city of Hargeisa, the capital of the country, and the next phase was extended to the large hotels in other major cities in the country. Also included in this project the implementation of a sales tax on the sale of telecommunication services, electricity and the sale of manufactured goods manufactured in the country.
The main purpose of the aforementioned delegation’s knowledge-raising trip to Ethiopia is part the implementation of the Goods and Services Tax {GST}, especially taxes on the sales of telecommunication services, electricity, hotels and the sales of the locally manufactured goods.
Public Relations & Information Department
🌐 www.slmof.org
☎513856
WhatsApp No: + 252-657729999