Mogadishu (Dawan Africa) – Somalia’s Ministry of Finance has reported that the country’s domestic revenue reached $369.4 million in 2024, marking a 12% increase compared to the previous year. The growth in revenue is attributed mainly to increases in income tax and sales tax collections, which saw an increase of 48% and 13.3%, respectively.
The report was unveiled today at a ceremony in Mogadishu, where the Annual Performance Report for the Ministry of Finance 2024 was presented. The event was attended by key officials from the Federal Government of Somalia and the United Nations.
Deputy Prime Minister of the Federal Government of Somalia, Salah Ahmed Jama, addressed the gathering, emphasizing that the report reflects the government’s significant achievements in financial management. He also pointed to the progress made in economic reforms and state-building, noting that the country has made remarkable strides over recent years.
"We want to commend the Somali citizens, especially the business community, who have significantly contributed to tax payments," said Salah Ahmed Jama, commenting on the revenue increase and public support.
Minister of Finance, Bihi Iman Egeh, also highlighted the importance of the 88% revenue increase over the past three years. He noted that 80% of this growth came from tax revenue, emphasizing the need for continued efforts in tax reform to ensure sustained economic development.
"Our revenue has increased by 88% over the past three years, with 80% of this increase coming from tax revenue. It is crucial that we continue expanding our tax base," said Minister Bihi Iman Egeh.
The UN Special Representative for Somalia, James Swan, also spoke at the event, reaffirming the United Nations’ commitment to supporting Somalia’s economic recovery and development in line with the Sustainable Development Goals (SDGs).
“We support your efforts and remain firmly committed to Somalia’s economic recovery, development, and vision for a more prosperous future,” said James Swan.
According to the Ministry of Finance’s report, the rise in domestic revenue was driven by increased income tax and sales tax collections. Income tax saw a 48% increase, while sales tax grew by 13.3%. For the first time, domestic tax revenue surpassed customs revenue, reaching approximately $200 million compared to $169 million from customs. This change is largely attributed to the introduction of the Electronic Tax Administration System (ETAS), which has streamlined tax collection processes and enhanced efficiency.
