Somalia, 6 October 2025 — Somalia’s newly established North East State on Monday defended its new taxation framework, amid growing tensions with major telecom and banking firms operating in the region.
The Federal Member State’s Ministry of Finance said several institutions had refused to comply with the tax system introduced between January 2024 and September 2025 and had declined invitations to meetings organized by the Puntland Business Association (PBA).
The Ministry accused some companies of resisting financial reforms and calling for leadership changes, which it warned undermined efforts to implement a modern fiscal system in the nascent administration.
“Each institution involved is expected to address the concerns raised by the public, and the government will continue to seek a consensus that respects citizens’ rights,” the ministry said. “We remain committed to taking any necessary measures to ensure the public’s rights and interests are safeguarded.”
The statement comes against a backdrop of opposition from leading private companies over what they term over-taxation by the Federal Member State.
On 5 October, firms including Amal, Telesom, Dahabshiil, and Golis criticized the government’s additional payments under the “State Building” initiative as exceeding legal obligations and potentially threatening services such as mobile money, remittances, and telecommunications. The companies said they were willing to pay legally required taxes but could not comply with the extra demands.