Tuesday December 1, 2020
GALKAAYO (HOL) - Traders in northern Galkaayo have held demonstrations and closed shops protesting a decree by Puntland President Abdullahi Deni that his administration will no longer accept import and export taxes in the local currency.The traders burnt tires and sealed off roads in the town hours after Deni issued the order. According to the decree, port officials in Bosaso have been instructed not to accept taxes in Somali shillings but US dollars only.
The order is said to be informed by run-away inflation in Puntland which has adversely affected trade and revenue collection.
“The decision on the tax policy is based on suggestions of the committee appointed by Puntland Government to recommend ways to tackle the inflation in Puntland,” the order reads n part.
Galmudug state has previously protested the move by Puntland to print new currency notes to offset its debts including payment of salaries for civil servants and security personnel.
However, the decision has resulted in high inflation rates.