Somalia advances plan to establish National Revenue Authority

Somalia's Finance Minister Bihi Egeh. [Courtesy]

Somalia has moved a step closer to establishing a National Revenue Authority (NRA) after the Council of Ministers approved legislation that will create the country's central tax administration agency.

The proposed law, which now awaits parliamentary approval, seeks to streamline tax administration, improve revenue collection and strengthen coordination between the Federal Government, Federal Member States and local governments.

According to the government, the authority will provide the legal and institutional framework for administering taxes under Somalia's recently adopted Constitution, which outlines revenue-raising responsibilities across different levels of government.

If approved by Parliament, NRA will oversee domestic revenue collection, replacing fragmented systems with a single national institution tasked with harmonising tax administration and improving cooperation among government agencies.

Officials at the Ministry of Finance say the authority will introduce digital systems to improve tax compliance, accountability and service delivery while strengthening oversight and taxpayer services.

The legislation forms part of Somalia's broader fiscal reform agenda aimed at increasing domestic revenue and reducing reliance on external financial support.

Finance Minister Bihi Iman Egeh said the government is seeking to establish a transparent, efficient and accountable revenue administration capable of financing public services through locally generated resources.

He added that the Cabinet had approved the draft legislation, which will be tabled in Parliament once lawmakers resume sittings.

If enacted, the National Revenue Authority will become Somalia's principal institution for domestic revenue collection.