The Republic of Somaliland’s Ministry of Finance has postponed the implementation of the Goods and Services Tax (GST) until August 1, 2026, following lengthy discussions with business leaders over concerns surrounding the tax rollout and technical preparations.
The decision was announced after a meeting lasting several hours between officials from the Ministry of Finance and representatives of Somaliland’s business community. The GST was originally scheduled to come into force on Saturday, July 11, 2026.
Somaliland’s Minister of Finance, Abdullahi Hassan, said the delay was necessary after inaccurate information spread in the market that differed from the agreement previously reached between the government and business representatives.
“After considering the recommendations presented by the business committee, we found that information circulating in the market was different from what had been agreed. This made it necessary to provide additional time to address the concerns and complete the remaining work,” Hassan said during a press conference in Hargeisa.
The minister praised the role of the business community in Somaliland’s development, saying traders were not opposed to government policies but were partners in nation-building.
“Business people are among those who helped build this country. They are not against government or national development; they are contributing to it. We have listened to the concerns of the public and the business community, and we have agreed to postpone the GST implementation until August 1, 2026, so that technical issues can be resolved,” he added.
The Chairman of the Somaliland Chamber of Commerce, Jamal Aideed, said business leaders had formally requested the government to delay the GST launch to allow more preparation time.
Aideed explained that confusion had emerged due to incorrect information circulating in the marketplace and confirmed that the tax would now be introduced on August 1, 2026.
“After detailed discussions and analysis, both sides reached an understanding. The GST sales tax proposal has been significantly reduced from its original form, and we agreed on the revised approach,” Aideed said.
“We requested the government to postpone the GST implementation that was scheduled for July 11, and the new date has been set for August 1.”
The government and business representatives said the postponement period will be used to complete technical preparations, improve communication, and ensure a smoother introduction of the GST system.