Somalia: In Baidoa, a New Income Tax Tests Public Trust in a Time of Insecurity and Joblessness

BAIDOA, Somalia — In the dusty streets of Baidoa, where armed checkpoints, rising prices and chronic unemployment shape daily life, a new government announcement has stirred fresh anxiety: residents are now being asked to pay a personal income tax.

Authorities in Somalia’s South West State recently rolled out the tax, saying it will apply to all salaries, allowances and work-related benefits. Officials frame it as a civic duty and a step toward development, urging people to comply under the slogan, “Be a tax-paying citizen and contribute to your country’s development.”

For many in Baidoa, the message rings hollow.

“I don’t even have steady work,” said a young private-sector employee who earns irregular income and asked not to be named for security reasons. “They are taxing people who are already struggling, while nothing improves around us.”

Under the new system, individuals earning between $100 and $500 a month will pay 6%, while those earning $500 to $1,500 will be taxed at 12%. Higher incomes face higher rates. In a city where few formal jobs exist, and many families depend on daily labor, remittances or humanitarian aid, even small deductions can feel heavy.

Baidoa, the interim capital of South West State, sits at the center of a region battered by years of conflict. Roads linking Bay and Bakool regions have been cut off by the al-Qaida-linked militant group Al-Shabab for more than a decade, choking trade and isolating communities. Businesses operate under constant threat, and travel outside major towns often requires risky detours or armed escorts.

State officials say the tax is necessary to boost domestic revenue and reduce dependence on donors, allowing the government to fund public services and security. “Without revenue, there can be no services,” one local official said, defending the policy.

But critics argue that taxation without visible services or accountability only deepens public mistrust. Civil servants and private workers alike question how funds will be used in a region where institutions remain weak.

Accusations of corruption and nepotism have long dogged the administration of President Abdiaziz Hassan Mohamed, widely known as Lafta-Gareen. His 2018 election was marred by violence in Baidoa that left dozens of civilians dead after clashes with security forces, according to rights groups. Opposition figures say his mandate expired in December 2022, leaving his government without legitimacy — a charge officials reject.

Some residents use harsher language. “People here call him the president who sits on a bloody chair,” said a local analyst, reflecting anger that still lingers from the election violence.

The regional parliament, meant to provide oversight, is widely viewed by critics as inactive and dominated by the executive branch, further fueling fears that the new tax could be misused. An economist from the region described the measure as “a burden on the poor rather than a foundation for development.”

“South West State has not created jobs, reopened roads, or improved security,” he said. “Yet it is quick to tax the little income people earn.”

Still, for the authorities, the decision marks an attempt — however controversial — to assert state authority and financial independence in a fragile region. For ordinary residents of Baidoa, it is another reminder that survival comes with a growing price tag, even as insecurity and joblessness remain unresolved.

GAROWE ONLINE