Barriers to Effective Revenue Mobilization in Bosaso Local Government

Governance Briefs

Barriers to Effective Revenue Mobilization in Bosaso Local Government

Bosaso, Puntland’s commercial hub, relies on business and customs taxes as primary revenue sources. While a legal framework and financial management system exist, significant gaps remain between policy and practice.

The municipality has limited fiscal autonomy, as key revenues from the port and airport are retained by federal member state (FMS)_authorities. Outdated manual tax collection systems and weak institutional capacity further constrain efficiency and transparency.

Citizens report coercive and unprofessional tax collection practices, perceive inequity in enforcement, and see minimal public services in return. This has deepened public mistrust and reduced voluntary compliance.

This paper recommends professionalizing tax collection, strengthening transparency, expanding electronic systems, restoring municipal revenue shares, and improving public service delivery to rebuild trust and enhance local fiscal governance.

Barriers to Effective Revenue Mobilization in Bosaso Local Government

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Somali Public Agenda

Somali Public Agenda is a non-profit public policy and administration research organization based in Mogadishu. Its aim is to advance understanding and improvement of public administration and public services in Somalia through evidence-based research and analysis.