This policy paper draws from a forum held by Somali Public Agenda (SPA) on September 3 2024 following the introduction of the new sales tax, as well as, existing literature, and interviews with businesspeople, FGS Ministry of Finance, and the public. Itseeks to provide an analysis of Somalia’s newly implemented 5% sales tax and its economic, fiscal, and social implications. It explores the problems that may impede its successful implementation and investigates the public response to the tax from various socioeconomic viewpoints. Finally, the paper informs policymakers, stakeholders, and the general public by identifying opportunities and challenges and presents practical suggestions for balancing budgetary goals with economic stability and social welfare.