Tax Expenditure
Systematically evaluating Somalia's tax incentives and expenditures to promote fiscal transparency, accountability, and effectiveness in tax policy supporting the government in optimizing tax incentives for national development.
Partner With UsOur vision
To establish a transparent, data-driven framework that ensures Somalia's tax incentives are economically justified, efficiently implemented, and aligned with national development goals.
Our mission
To provide comprehensive evaluation and advisory services on tax expenditures, enabling the government to make informed decisions that optimize fiscal resources, enhance accountability, and promote equitable economic growth.
Core objectives
Evaluate the Efficiency and Effectiveness of Tax Expenditures
- Develop a systematic framework for assessing the performance and cost-effectiveness of tax incentives.
- Analyze the impact of tax exemptions and incentives on government revenue and public welfare.
Promote Accountability and Transparency in Tax Policy
- Establish a transparent reporting system to track and disclose tax expenditures to policymakers and the public.
- Develop guidelines for setting spending ceilings on tax incentives to prevent fiscal leakages.
Enhance Government Capacity for Tax Expenditure Management
- Provide technical assistance to government agencies on evaluating and reporting tax expenditures.
- Design systems for monitoring, evaluating, and auditing tax-related programs at federal and state levels.
Facilitate Evidence-Based Policy Decisions
- Conduct policy research and analysis to guide decision-making on tax incentives.
- Establish a platform for dialogue between government, business, and civil society on tax policy.
Core programs
Comprehensive Tax Expenditure Evaluation
- Develop methodologies to assess the cost-benefit of tax incentives.
- Evaluate the impact of sector-specific tax incentives, such as those targeting telecommunications and agriculture.
- Identify and recommend areas where incentives can be reformed or eliminated for greater efficiency.
Capacity Building and Training
- Offer courses on tax policy evaluation and expenditure reporting to government officials.
- Provide technical assistance to government agencies in designing tax expenditure budgets and audits.
- Organize workshops and seminars to raise awareness of the role and impact of tax expenditures.
Tax Transparency and Accountability Initiatives
- Develop reporting frameworks to ensure transparent tracking of all tax expenditures.
- Collaborate with civil society and the media to promote public understanding of tax policies.
Policy Research and Knowledge Exchange
- Produce policy briefs on the economic implications of tax incentives.
- Conduct research on regional tax trends and offer recommendations for aligning Somalia's tax expenditure policies with international best practices.
- Host an annual conference on tax expenditure and fiscal governance.
Program divisions
Key indicators
- Reduction in inefficient or redundant tax expenditures.
- Improvement in tax revenue collection due to rationalization of incentives.
- Number of government officials trained in tax expenditure evaluation.
International best practices adapted to Somalia
Benchmarking Against Regional Peers
Compare Somalia's tax incentives with those of other East African countries to identify areas for alignment and improvement.
Performance-Based Tax Incentives
Introduce performance-based tax incentives that align with key national priorities such as employment generation and local industry growth.
Integrated Tax Expenditure Budgeting
Develop a unified budgeting approach that incorporates tax expenditures into the national fiscal framework, ensuring greater oversight.
Public Engagement in Tax Policy
Create platforms for public dialogue on tax incentives to foster trust and accountability in fiscal policies.
The Center for Performance Evaluation of Tax Expenditure will serve as a critical component in Somalia's fiscal governance framework, promoting transparency, accountability, and effectiveness in tax policy through systematic evaluation and data-driven recommendations.
Work with this center
Partner with the Center for Performance Evaluation of Tax Expenditure to advance transparent and accountable fiscal policy in Somalia.
Contact the Center