The Ministry of Finance and Economic Development of the Republic of Somaliland took a significant step toward modernizing the nation’s tax system today as Deputy Minister Mr. Ismail Mawlid Abdilahi chaired a high-level meeting to approve the Regulations for the Sales Tax Machine and the integration of online systems with Goods and Services Tax (GST) taxpayers.
Held at the Ministry’s headquarters, the working session brought together 25 senior officials from various departments, along with technical experts, to finalize the regulatory framework that will govern the rollout of electronic sales tax machines across businesses.
Speaking at the meeting, Deputy Minister Abdilahi underscored the transformative impact of the new system. “This is a major leap forward in establishing a modern, efficient, and transparent tax collection mechanism,” he said. “By linking the Ministry directly with business premises through secure online platforms, we will minimize errors, enhance accountability, and ensure real-time coordination of economic data.”
The initiative forms part of a broader government strategy to digitize financial processes, reduce revenue leakage, and improve ease of doing business for taxpayers. Once fully implemented, the electronic system will require registered businesses to use approved sales tax machines that automatically transmit transaction data to the Ministry, replacing manual reporting methods.
Senior ministry officials described the approval of the regulations as a critical milestone that paves the way for nationwide deployment in the coming months. Technical teams are now tasked with finalizing system testing and training programs for both ministry staff and the private sector.
The meeting signals Somaliland’s continued commitment to financial reform and good governance, aligning its tax administration with international best practices.