By M.A. Egge
The Ministry of Finance and Economic Development of the Republic of Somaliland has initiated an assessment of the Customs and Excise Administration System.
This international assessment follows the Tax Administration Diagnostic Assessment Tool (TADAT), a methodology for assessing domestic taxes developed by the International Monetary Fund (IMF), the World Bank, and the Taxpayers’ Association.
The Customs assessment is based on the standards set by the World Customs Organization.
The Minister of Finance and Economic Development, who opened the meeting, noted the special importance of the government to know “where we are in the administration of various taxes and how the ministry is committed to obtaining a reliable and accurate assessment so that we can protect ourselves from existing gaps, as well as to know the taxes we collect, those we miss, the existing system and the development we need whether it is in terms of the system and the personnel and training they need”.
The Director General of the Ministry of Finance also noted the importance of this assessment and how it is of particular importance as a Ministry to conduct a comprehensive assessment that touches on every aspect, which will enable us to know where we are in terms of internationally recognized standards.
He said, “The assessment is intended to determine where we stand as a country in terms of international standards, this is the first time that an international assessment has been conducted in Somaliland regarding the system we use to manage the various taxes collected by the government”.
In conclusion, the Ministry of Finance is engaged in various efforts aimed at accelerating and modernizing the tax administration and management process and identifying loopholes.
The assessment programme is being conducted by a company called Parker Russell, hence supported by the African Development Bank, specifically the ISEGP project.