Somalia: The nexus between taxation, public trust and public services

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The Federal Government of Somalia (FGS) has recently started financial reform initiatives aimed at increasing domestic revenue. The government commenced the collection of two types of tax: income tax and sales tax. Income tax collection — 6% on salaries between $200 and $800; 12% on salaries between $800 and $1500 and 18% on salaries above $1500 — was started for the employees working with…