FEDERAL GOVERNMENT OF SOMALIA LAUNCHES ROAD TAX MANAGEMENT SYSTEM TO BOOST EFFICIENCY AND CONTROL

JANUARY 31, 2024 - MOGADISHU, SOMALIA

The Federal Government of Somalia has taken a major step towards modernizing public finance and improving infrastructure funding with the launch of a new Road Tax Management System expertly developed by PFM Smart®. This cutting-edge system is designed to streamline the collection of road taxes, enhance operational efficiency, and provide more effective oversight of revenue flows, all of which are critical to advancing the nation’s road infrastructure and transport network.

The Road Tax system has been introduced with the aim to modernize the tax collection process by shifting from outdated manual methods to a sophisticated digital platform, making it easier for vehicle owners to fulfill their tax obligations. Additionally, the system is expected to significantly boost revenue collection by increasing tax compliance through a user-friendly and transparent payment process. This system also strengthens transparency and accountability by enabling real-time tracking and reporting of tax collections, ensuring that every transaction is recorded and can be audited, thereby reducing the risk of fraud and corruption. Furthermore, it centralizes data on vehicle registrations and tax payments, empowering the government to analyze trends, forecast revenues, and make well-informed decisions about future infrastructure investments.

Designed by PFM Smart®, the system features innovative capabilities that offers an online tax payment portal, allowing vehicle owners to pay their road taxes securely and conveniently, minimizing the need for in-person transactions. Government officials can access real-time data on tax collections, enabling them to monitor performance, quickly identify potential issues, and implement corrective actions as necessary.