Somalia: Mogadishu's main market closed over tax hikes

MOGADISHU, Somalia - The businesses in Mogadishu's main Bakara market closed on Sunday in a protest of new taxes imposed by the Finance Ministry of Somalia's Federal government, Garowe Online report

The traders say they decided to close their business shops in the market following the tax increase on the imports at Mogadishu port and pledged to continue their protest until the government fully addresses their grievances.

"We decided to shut down our business premises in Bakaro market because of the unaffordable tariffs imposed by the Finance Ministry of Somalia," said Ahmed Hassan, a trader while speaking to GO by phone from the market

The market closure came after talks between a trade union in Benadir region and Somalia's Minister of Finance Abdirahman Dualle Beyle over the new taxation ended with no apparent breakthrough for the stalemate.

The Minister has last week held a press conference in Mogadishu and announced that the government charges the least tax on the commercial goods imported at the seaport and summarized previous 11 taxations in three tariffs.

The government also imposed a 5% value-added tax [VAT] on the hotels and says the tax collection is aimed at to boosting its budget and pay civil servants and soldiers as the east Africa nation is recovering decades-long conflict.

GAROWE ONLINE