GAORWE (SD) – Puntland government has rescinded its earlier directive ordering traders to pay all import and export taxes in dollars.
In a decree issued on late Saturday, Puntland leader Saed Abdullahi Deni directed Bossaso port officials to accept only 10% of the taxes to be in Somali shilling.
The development comes less than 24 hours after violent demonstrations shook Puntland administrative capital, Garowe.
The decree also ordered use of Somali shillings for less than $10 transactions in Puntland, reversing previous order which sat use of Somali shilling transaction for less one dollar.
Henceforth, all transactions of less than $10 will be made using the local currency.
“From tomorrow 10 dollars or more will have to be used for mobile money transactions,” Deni said.
The directive said the decision on the tax policy was based on suggestions of the committee appointed by Puntland Government to recommend ways to tackle the inflation in Puntland.
Two weeks ago, committee from traders had met Deni and convoyed complaints from traders and locals over inflation.
Hundreds of locals on Saturday protested against soaring prices and exchange rate. The use of Somali shilling was also rejected in some parts of the state.