GAROWE (Halbeeg News) – Khat traders in Somalia’s northeastern region have suspended transporting the stimulant tree for the last for one week.
The union of the traders has halted the business over the cancellation of tax reduction implemented by Puntland state authorities.
According to Osman Ali Haybe, chairperson of khat traders, flights transporting the stimulant leaf, khat from Kenya were stopped until further notice.
Haybe says traders plan to hold a meeting with Puntland President, Said Dani over taxes on Khat.
The traders are protesting a move by the new administration to increase the tax on the stimulant leaf.
The weeklong boycott is now threatening to take its toll on consumers and families relying on the trade though some traders transport the product from Ethiopia through road and other parts of Somalia.
“Traders have boycotted importing miraa to Puntland state over the tax dispute. Initially, the previous governments offered traders tax reduction but since President Said Abdullahi Mohamed ordered the suspension of the tax reduction, we decided to stop trade,” said Haybe.
Mid this month, President Said has ordered his finance ministry to lift tax exemptions for a government department and non-governmental organizations.
“I want to inform the government institutions, non-governmental organizations as well as the private business entities through the ministry of finance that no tax exemptions or reductions will be applicable from 12th January 2019,” President Dani said in the directive.
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