Federal Government of Somalia Issues Resolution on Government Revenue Management and Tariffs
Aug 22 (Jowhar) – The Council of Ministers of the Federal Republic of Somalia, which held a meeting last night chaired by the Prime Minister of the Federal Republic of Somalia, Mr. Hamsa Abdi Barre, issued an important resolution on the prohibition of transferring or withholding government revenue. Non-Treasury Bank Account (TSA).
The Council of Ministers passed the Resolution, the provisions of which are written below:
Article 1
Prohibition of Depositing or Managing Government Revenue in a Bank Account Other Than the Treasury Department (TSA)
1. According to Article 2(1)(r) and Article 4 of the General Finance Management Law, 2019, all the revenue of the Federal Government of Somalia shall be deposited and managed only in the Consolidated Treasury (TSA).
2. In accordance with Article 4(2) and Article 42(4), it is prohibited to hold or keep the Government’s income in a bank account other than the Consolidated Treasury (TSA).
3. In accordance with Article 4(3) of the General Finance Management Act, 2019, Federal Government revenue includes all funds received by Government agencies, as well as all funds collected on behalf of a Government agency, or that of the Federal Government. Somalia including but not limited to all taxes, fees and fines collected in accordance with the various laws and regulations in force.
Article 2
Government Agency Responsible for Revenue Collection
1. According to Article 8(2) of the General Finance Management Law, 2019, the Ministry of Finance is the only agency responsible for the collection, management and monitoring of all types of income of the Federal Government of Somalia.
2. Without prejudice to their role in providing public services, all other government agencies, whether civil or military, are prohibited from voluntarily collecting or managing government revenue, including but not limited to all taxes, fees and fines.
Article 3
Setting Tariffs
1. In accordance with Article 6(b) and Article 108 of the Revenue Management Law, 2019, the Minister of Finance alone is empowered to set and amend all tariffs based on various types of Government revenue including but not limited to tariffs for all taxes, fees and fines.
2. Without prejudice to their role in enforcing and facilitating the payment of various types of Government revenue, all other Government agencies, whether civil or military, are prohibited from setting and modifying all base tariffs. for various types of Government revenue including but not limited to tariffs on all taxes, fees and fines.
3. Pursuant to Article 6(b) and Article 108 of the Revenue Management Law, 2019, the Ministry of Finance shall conduct a comprehensive survey of all current tariffs related to the various sources of revenue of the Federal Government of Somalia, to ensure that All such tariffs, including taxes, fees, and fines, may be compatible with the economic conditions of the country.
Article 4
Review of Agreements and Contracts that do not comply with the General Financial Management Act, 2019 and the National Procurement Act 2016
1. In order to ensure compliance with the provisions of the law and at the same time to prevent financial risks that may arise, all agreements with financial implications in force under the amended law must be aligned with the National Procurement Law, 2016, and the General Financial Management Law, 2019.
2. All international agreements with financial implications that the Federal Government of Somalia has with foreign companies must be reviewed and adjusted to the law when they expire before being renewed.
3. The Ministry of Finance is instructed to advance and regularly pay the costs resulting from the agreements between the Government and private companies to avoid legal penalties that may arise.
4. This resolution supersedes all agreements below:
(b) Agreement to perform electronic container tracking services that have already been entered into.
(t) Agreement to perform container cleaning services (container cleaning services) entered into in advance.
(j) Local Government Sanitation Agreement.
Article 5
Special Provisions
1. The scanning to check the goods landed at the Port of Mogadishu shall reduce the service price by fifty percent (50%) and the fee shall be paid to the United Treasury.
2. Somali businessmen who import goods from Somali ports are instructed to obtain a certificate of product quality from the Veritas company in Somalia, which is responsible for ensuring the quality of products.
3. Unlawful facilitation payments from traders at the port and airport have been stopped.
4. All the authorities and operators of Alport Mogadishu Company, those of Furda, the Tax Guard and other security agencies can not block or delay the cost of goods at the Port.
5. The Federal Government of Somalia should establish a plan to facilitate the service provided at Mogadishu Port.
6. All customs brokers & shipping lines are prohibited from charging illegal facilitation payments to traders.
7. Tolls have been stopped from trucks leaving checkpoints in Mogadishu such as Afgoye and Balcad.
8. The fee for the Port Access Permit has been reduced to $40, and the $110 fee has been removed.
9. Any costs incurred in the operations called Container-Breaking have been waived. Any person involved in charging these prohibited fees will be subject to legal action.
10. The Ministry of Commerce is instructed to investigate and consult on complaints and disputes between businessmen, and make proposals to the Council of Ministers.
11. The Ministry of Transport and Aviation is instructed to bring a plan to resolve the complaints of cargo transport at the Port of Mogadishu, as well as a proposal to be brought by the Council of Ministers.
