THE CASE FOR BANADIR STATE: ADDRESSING MOGADISHU’S UNJUST TAX BURDEN AND LACK OF REPRESENTATION
Mogadishu city hosts 3-4 million people and serves as Somalia’s political and economic centre. However, despite its substantial contribution to the country’s revenue, the city remains burdened by an antiquated tax system and a federal structure that does not adequately address its distinct requirements. The people of the city are weighed down by taxes that fail to correspond with their economic circumstances, and to make matters worse, they receive very little in return as there is no free education, no healthcare and no substantial infrastructure development. This situation necessitates the establishment of Banadir State, which would offer Mogadishu the much-needed political representation and accountability.
Mogadishu, the only region in Somalia that directly pays taxes to the federal government, is a glaring example of unjust taxation. The most prevalent form of this unfair system is the sales tax, which is still governed by a law from the dictatorship era 1984. This archaic legislation is out of place in the current federal system, where regional states have more control over their finances. While other regions, some of which do not even pay taxes, have a degree of autonomy in managing their resources, Mogadishu is under the direct control of the federal government. This government levies taxes without providing equivalent benefits, placing an excessive burden on the people of Mogadishu. Both businesses and residents are forced to pay taxes that do not match the services they receive. Mogadishu is trapped in a system that sees it only as a source of revenue without giving it any say in how that revenue is used.
The residents of Mogadishu see little return on their tax contributions. Basic services, such as education and healthcare, which should be fundamental rights, are absent. Infrastructure development is minimal, and what little exists is often poorly maintained. Essentially, the people of Mogadishu are contributing to a system that does not serve them. The lack of investment in public services and infrastructure is not just a governance failure; it is also a failure of representation. Without their own state, the residents of Mogadishu have no way to hold the government accountable for the use of their taxes. The federal government, distant and often indifferent to the specific needs of Mogadishu, has little incentive to improve the situation.
The establishment of Banadir State is not merely an administrative formality; it is a crucial measure to ensure that Mogadishu’s residents receive fair representation and that their taxes are utilised efficiently. A Banadir State would enable the people of Mogadishu to manage their own resources, allowing them to prioritise investment in education, healthcare, and infrastructure that aligns with their specific needs.
The recent disputes highlighting the difficulties experienced by tuk-tuk drivers in Mogadishu vividly underscore the necessity for fair representation. These drivers face numerous daily challenges, such as road closures, potholes, and roadblocks, all of which complicate their work and reduce their earnings. The situation recently came to a head when tuk-tuk drivers took to the streets to protest against the oppressive policies they endure.
These drivers, who depend on their daily earnings to support their families, are subjected to a government-mandated rotation system that limits them to working only 15 days a month. Despite this significant reduction in their capacity to make a living, they are still required to pay $15 monthly in taxes, which offers no tangible benefits. To make matters even worse, these drivers are compelled to pay $20 in bribes to traffic officers, according to whistleblowers.
Furthermore, they must obtain driving licences at an exorbitant cost of $300.25—one of the highest in the country, which makes it very hard for most of them to comply. This entails $15 for a birth certificate (plus a bribe of $10), $13.25 for CID (with an additional $10 for a bribe), $10 for registration, $25 for health, $80 for driving school fees, $62 for obtaining the license, $55 for Midnimo of driving school and $20 for traffic ticket fine, according to whistleblowers.
In a recent press briefing, the General Director of the Ministry of Transport and Civil Aviation, Bashiir Macalin, sought to downplay these concerns. Speaking from his air-conditioned office, Mr. Bashiir asserted that the actual cost of a driving licence was just $41.5. However, this claim was swiftly disputed by the drivers, who publicly confirmed on television that they were, in fact, paying $300.25 for the licence. Mr Bashiir’s dismissive demeanour, coupled with the stark contrast between his assertions and the drivers’ actual experiences, reveals a significant disconnect and lack of respect for the people he is meant to serve. This incident emphasises the pressing need for a Banadir State that can guarantee government accountability and responsiveness to the needs of Mogadishu’s residents.
The inequitable treatment of Mogadishu is further highlighted by the recent endorsement of an election bill by the Council of Ministers. This bill contains provisions impacting Mogadishu, even though Parliament has not yet determined the city’s status as required by Article 9 of the Provisional Constitution. This action has faced widespread criticism for being both unlawful and unconstitutional. The bill’s approval without adhering to the proper legislative process not only sidesteps essential legal frameworks but also disregards the constitutional rights of Mogadishu’s residents, highlighting the necessity for a Banadir State to protect their interests.
Furthermore, the establishment of a Banadir State would provide the political representation that is currently missing. As an independent state within the federal system, Banadir would be able to elect its own leaders who are answerable to the people of Mogadishu rather than to remote federal authorities. This would ensure that decisions regarding taxation and expenditure are made with the interests of Mogadishu’s residents in mind.
Mogadishu’s current situation is untenable. Although the city makes a substantial contribution to the national economy, its residents are burdened by an unfair tax system that does not provide the essential services and infrastructure they require. The absence of political representation further aggravates the problem, leaving the people of Mogadishu with no means to demand improved governance. The establishment of Banadir State would rectify these injustices by providing Mogadishu with the political representation it requires and ensuring that taxes collected from its residents are utilised to enhance their quality of life. It is time for Somalia’s federal system to acknowledge the distinctive role of Mogadishu and grant it the autonomy and accountability it merits. Only by establishing Banadir State can the people of Mogadishu begin to see the worth of their tax contributions and the development that has long been withheld from them.
