Somalia: Mogadishu Sees Second Day of Protests Over New Tax

MOGADISHU, Somalia  — Traders in Mogadishu's Bakara market, one of the city's economic hubs, staged a second day of protests Monday over a new five percent tax on electronic payments. The sales tax, which took effect Sunday, requires merchants to add the extra charge to all electronic transactions, a decision aimed at generating revenue for infrastructure and security in Somalia, a nation grappling with poverty, corruption, and insurgency.

The implementation of the tax has met with significant opposition from traders who argue that they are already strained by high transportation tariffs for goods. Many shops in the market closed in protest, with dozens of traders gathering to voice their discontent. "We are not against the tax, but we need a proper system and a halt to the money being illegally extorted from merchants before we can agree to the government's instructions," said Suleyman Adan, a trader, to AFP.

The protests reflect broader issues of governance and economic management in Somalia, ranked among the poorest and most corrupt countries globally. The nation also faces security challenges from Al-Shabaab, an Al-Qaeda-linked group that has destabilized the region for years.

Fadumo Adan, a Mogadishu resident, noted that while some businesses have begun to comply with the tax, the overall sentiment is one of dissatisfaction. "I've seen dozens of merchants marching to showcase their dissatisfaction," she said, highlighting the widespread opposition among the business community.

Somalia's lawmakers have also criticized the tax, questioning its timing and the method of implementation in a country struggling with economic recovery and security issues.

The government's move to fund essential services through this tax has ignited a debate on economic policy, fairness, and the necessity for dialogue between the government and its citizens. As Somalia seeks stability and development, the outcome of this tax dispute could influence future economic policies and the relationship between the state and its business sector.

GAROWE ONLINE