CAPE TOWN – The Somali government has introduced tax exemptions on basic commodities to help cushion the economic impact of the Covid-19 pandemic, the Ministry of Finance announced on Tuesday.
The tax exemptions came into effect on April 15.
Local online publication Somali Affairs cited a statement issued by the department. According to the statement, a 100% tax exemption will be granted for rice and dates, while a 50% tax exemption will be put in place for wheat flour and cooking oil.
The online publication said the tax exemptions would also provide relief for consumers as they approach the holy month of Ramadaan.
Somalia has recorded 60 cases of Covid-19 and two deaths.
The government has put in place measures to reduce the spread of the disease through contact with an infected person. These measures include the suspension of all international flights entering the country.
The Somali federal government has also put in place stricter measures, such as banning the movement of people between 8pm and 5am in the country’s capital, Mogadishu. The curfew came into effect on April 15.
The new order applies to all residents living in the area, but essential-services workers such as police, nurses and food distributors are exempt.
According to the United Nations Children's Fund (Unicef), Somalia ranks among the 10 poorest countries in the world. The country has a population of around 12.3 million and it is estimated that 43% of the population lives in extreme poverty (less than 1 US dollar a day) and over half of the labour force is unemployed.
The African Development Bank (AfDB) and African Development Fund recently approved a framework for $122.55 million (about R2.3 billion) to clear Somalia’s arrears, paving the way for the bank group to re-engage with the Horn of Africa country on more financing.