Somaliland could boost revenue by $9M+ a year just by enforcing existing taxes on the wealthy. No new taxes needed—just political will.
Somaliland, like many governments navigating economic strain, faces one of its most pressing fiscal challenges in years: how to raise domestic revenues without deepening inequality or burdening the most vulnerable. A growing body of research—including new findings from the WARYATV Research Team—suggests a clear answer: target under-taxed wealthy individuals through smarter, more focused tax enforcement.
Today, too many of Somaliland’s richest citizens go untaxed, while teachers, small vendors, and salaried workers bear a disproportionate share of the burden. In cities like Hargeisa and Berbera, where property values and private wealth have ballooned in recent years, the income and assets of elite families remain largely out of reach for tax authorities.
This is not a result of weak tax laws—it is a failure of enforcement and prioritization.
An Unfair Burden
The numbers speak for themselves. Before 2023, only one of the top 33 senior government officials in Somaliland paid personal income tax. Meanwhile, just 74% of landlords identified in Hargeisa were registered for tax in 2024, despite booming real estate markets. Contrast this with public employees, whose taxes are automatically withheld. These individuals cannot avoid their obligations—not because they earn more or believe in the system, but because the system is designed to make avoidance impossible for them.
The outcome? The wealthiest Somalilanders pay a lower effective tax rate than average citizens—a situation that undermines both economic justice and the government’s ability to deliver services.
Three Simple Fixes for Big Gains
According to the WARYATV team, the government could raise millions of dollars annually by enforcing existing laws—not by raising tax rates or introducing new ones. The formula is straightforward:
Identify high-net-worth individuals using data already available (property transactions, rental income, government contracts).
Simplify compliance, making it easier for individuals to report income and assets.
Enforce existing obligations with both firmness and fairness.
This isn’t theoretical. Targeted efforts could generate up to $9.3 million in additional revenue annually—or $900,000 from a single region like Awdal. In cities like Berbera or Hargeisa, where land speculation is a common form of wealth storage, property tax reforms alone could triple current collections.
Redirecting the Revenue Service
Part of the problem lies in how revenue officers are deployed. In places like Sanaag and Togdheer, too many resources go into registering tiny informal businesses that yield little revenue. Instead, the focus should shift to identifying wealth holders—those with significant landholdings, high-value transactions, or contracts with the government.
Rather than rely on foreign definitions of wealth, Somaliland must develop local criteria for high-net-worth individuals—tailored to its own economy. This could include benchmarks like earning over $300,000 in annual rental income or conducting land sales totaling more than $600,000 over five years.
Institutional Backing Matters
Creating a dedicated office for wealthy taxpayers is essential—just as the country already has one for large companies like telecoms and banks. But this must come with strong political backing from revenue leadership and government. Well-connected individuals cannot be above the law.
At the same time, a cooperative approach should lead the way. Voluntary disclosure programs—with tax amnesties—can both improve compliance and generate immediate returns. Similarly, requiring tax clearance certificates for public office and government employment can institutionalize transparency and increase accountability.
The Road to Fairer Taxation
If Somaliland is serious about tackling inequality, stabilizing public finances, and building a functioning state, it must start with taxing its own elite fairly. This isn’t just a matter of numbers. It’s a test of political will, administrative reform, and public trust.
Smarter tax collection can deliver immediate results, while laying the groundwork for long-term structural equity. Somaliland’s future stability—and the social contract on which it depends—requires nothing less.
