New Report Shows Militant Group Al-Shabab Collecting $15 Million A Month in Tax Revenue in Somalia.
What happens when a terrorist group collects almost as much in taxes from citizens than the government? A new report by the Hiraal Institute alleges that in Somalia this has been the case. The insurgent group al-Shabab is estimated to be collecting an approximate $15 million USD a month from Somali citizens. That’s $180 million USD a year. Anadolu Agency reported that in 2017 the Somali government’s overall tax revenue for the year was $141 million USD.
Al-Shabab has been conducting a brutal insurgency in Somalia since 2004 and effectively controls the southern half of the country. Even in the northern half, al-Shabab holds a large degree of influence as is evidenced throughout the findings of the Hiraal Institute report.
The report is the second in two years on the capabilities of al-Shabab’s domestic financing and tax collection. This report indicates a large jump in the capabilities of the group compared to just two years prior. The report is based off interviews with 70 bussinessmen, government officials, al-Shabab defectors and even current members of the group’s tax collection wing. The interviews took place in person and via the phone.
Hiraal’s findings show a well designed network of tax collection that is evolving over time. Current revenue streams for the group include placing a tax on the import and export of shipping containers at ports, an annual individual religious tax, a tax on irrigation in rural areas and the collection of tolls from checkpoints. Reuters reports that Hiraal’s findings come before a long anticipated “United Nations report expected to say al Shabaab is generating a significant cash surplus and moving millions of dollars through the formal banking system.”
https://theowp.org/new-report-shows-militant-group-al-shabab-collecting-15-million-a-month-in-tax-revenue-in-somalia/
What happens when a terrorist group collects almost as much in taxes from citizens than the government? A new report by the Hiraal Institute alleges that in Somalia this has been the case. The insurgent group al-Shabab is estimated to be collecting an approximate $15 million USD a month from Somali citizens. That’s $180 million USD a year. Anadolu Agency reported that in 2017 the Somali government’s overall tax revenue for the year was $141 million USD.
Al-Shabab has been conducting a brutal insurgency in Somalia since 2004 and effectively controls the southern half of the country. Even in the northern half, al-Shabab holds a large degree of influence as is evidenced throughout the findings of the Hiraal Institute report.
The report is the second in two years on the capabilities of al-Shabab’s domestic financing and tax collection. This report indicates a large jump in the capabilities of the group compared to just two years prior. The report is based off interviews with 70 bussinessmen, government officials, al-Shabab defectors and even current members of the group’s tax collection wing. The interviews took place in person and via the phone.
Hiraal’s findings show a well designed network of tax collection that is evolving over time. Current revenue streams for the group include placing a tax on the import and export of shipping containers at ports, an annual individual religious tax, a tax on irrigation in rural areas and the collection of tolls from checkpoints. Reuters reports that Hiraal’s findings come before a long anticipated “United Nations report expected to say al Shabaab is generating a significant cash surplus and moving millions of dollars through the formal banking system.”
https://theowp.org/new-report-shows-militant-group-al-shabab-collecting-15-million-a-month-in-tax-revenue-in-somalia/