MOGADISHU — The main market in Mogadishu’s Hamarweyne district remained closed for a third straight day Monday as traders protested what they say are excessive and unlawful tax demands imposed by Somalia’s Federal Government.
Shopkeepers told local media the Ministry of Finance’s revenue department recently introduced additional fees that far exceed the legally mandated taxes they already pay each year. Several business owners said the new charges run into the hundreds of dollars — sums they say they cannot afford in the current business climate.
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Mobile phone shops and accessory vendors were among the most affected, with rows of shutters down since the weekend. Traders maintain the new fees are “illegal” and fall outside any official tax framework recognized under Somali law.
“We have paid the legal taxes required of us, but these new fees are extremely burdensome. We cannot pay them,” said a trader who requested anonymity.
Journalists attempting to document the shutdown said security forces restricted filming and photography of closed storefronts, ordering that no videos or images be taken — a move that heightened tensions with merchants already frustrated by the financial strain.
Hamarweyne traders have appealed to federal authorities to reverse the decision and remove what they consider unlawful financial pressure. They warn that prolonged closures will damage livelihoods, disrupt supply chains and undercut the broader Mogadishu economy that relies on the district’s dense, daily commerce.
The standoff has slowed foot traffic and disrupted movement in and around the market, a hub for electronics, clothing, foodstuffs and household goods. With many stalls dark and doors locked, residents reported longer trips to find basic items and reduced availability of popular goods typically sourced in Hamarweyne.
Business owners say they are not refusing their tax obligations but insist the new demands were neither communicated transparently nor grounded in existing law. They argue that layering fresh fees on top of annual payments will push many small operations into insolvency just as they contend with volatile prices, tight margins and intermittent security risks.
As of Monday evening, there was no public indication of a compromise. Traders remained firm that market activity would not resume until the Ministry of Finance withdraws the contested charges, while the government had not issued a detailed public response addressing the merchants’ legal concerns.
The impasse underscores enduring tensions over revenue collection in Somalia’s capital, where traders often sit at the fault line between state efforts to raise income and the realities of operating small businesses in a fragile economy. For now, cash tills are quiet in Hamarweyne, and the city is feeling the ripple effects of a market that serves thousands daily.
By Ali Musa
Axadle Times international–Monitoring.
