Tax and public finance

Political economy analysis of taxation in Somalia

Alma Economics carried out a political economy analysis of domestic revenue mobilisation in Somalia in which we investigated the relationship between taxation, public service provision, and political attitudes. The project shed light on tax collection patterns in Somalia, cultural attitudes towards taxation and government, the business environment, and additional constraining factors faced by tax collectors.

Our research led to the formulation of a set of recommendations aimed at supporting political and economic reform in the country. These sought to address key obstacles to improving revenue collection, such as unresolved constitutional questions, the lack of public trust that taxes will be used for the effective delivery of services, and insufficient data collection concerning the operation of businesses, among others.