Perceptions, Trust, and Faith: Factors Shaping Tax Non-Compliance in Adado District

Governance Briefs

Perceptions, Trust, and Faith: Factors Shaping Tax Non-Compliance in Adado District

Low trust and negative perceptions of the Adado local government—driven by limited transparency, unfulfilled promises, and weak communication—undermine tax compliance among businesspeople.

Religious misinterpretations framing taxation as haram (forbidden) discourage compliance and highlight the need for structured dialogue with religious leaders to clarify Sharia perspectives on taxation.

Dependence attitudes and weak governance capacity—including expectations of external assistance and inadequate service delivery—reduce confidence in locally generated revenue and weaken citizen participation.

The brief recommends strengthening awareness, dialogue, and inclusion. The Adado local government should invest in community education, establish an independent business committee, engage religious scholars for Sharia clarification, ensure transparency in budget discussions, and enforce fair tax compliance to rebuild trust and align revenue collection with local development priorities.

Perceptions, Trust, and Faith: Factors Shaping Tax Non-Compliance in Adado District

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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.