They are using 2018 figures, wonder how much tax Hargeisa municipality collects in 2022? This goes a long way in explaining all the infrastructure projects in Hargeisa that have been going on recently!
There is still a long way to go. For instance all property sold or rented are not taxed.
Can you imagine, there are so many notary providers who write notary property agreements which the government takes zero tax.
I think the Gov’t should oblige the Notary providers to take the taxation on behalf of the government. Otherwise revoke license to operate.
Also, another thing that Hargeisa desparately needs is taxation on property based on land value. For instance the land value in the Business Centre costs tens or even hundreds more than the same land size just 5km away from the City Centre.
By having a sliding scale taxation, it will help collect more tax, also make sure that smaller buildings are forced to sell or build something that will return value i.e. Double storey building for example instead of a single storey building. Higher taxation forces those who hog land or land-bank, to sell. So someone else who is willing to build a bigger building which will return bigger rent - which then supplements the bigger land taxation.
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