A Consultative Meeting of the Ministries of Finanace of the Federal Member States (FMSs) hosted by Jubbaland Ministry of Finance was held in Kismayo between 12th -13th August to enhance the co-operation and to strengthen the relationship amongst the FMS.
The meeting was chaired by the Deputy Minister of Finance of Jubbaland Mr. Hersi Jama Ganni and attended by Mr. Abdirahman Ibrahim Aden, Finance Minister SWS, Mr. Said Siyad Shirwac, Finance Minister of Galmudug, Mr: Mohamed Mohamud Abdulle, Finance Minister of Hirshabeelle, Mr. Mohamed Jibril, Deputy Finance Minister of Puntland, and technical staff from the respective Ministries of Finance.
After consultations, the ministers agreed on the following points:
- A consultative forum named (Inter-state Finance Ministries Forum) with the aim of coordinating of finance ministries to cooperate for all matters relating to financial aspects and the federal arrangements was established.
- The Ministers collectively supported the Intergovernmental Finance Ministers Forum and the Technical Committee on their successful initiatives of the fiscal harmonization.
- Following the implementation of the Garowe Agreement regarding sin tax harmonization, and the challenge of this issue, the Finance Ministers proposed and appeal to the Federal Government to assist Galmudug and Hirshabeelle states in the implementation of khat (catha edulis) tax (Qaad/Jaad).
- The Ministers are alarmed by the double taxation of goods crossing the boundaries between the states and underline the need for a long-term solution led by the FGS Ministry of Finance to end this.
- Ministers have made a common concern about the management of the bilateral and multilateral grants for Somalia and proposed to develop a clear policy framework based on the needs of the Federal Government and FMSs
- Ministers appealed for the application and expansion of the Capacity Injection Mechanism program to the FMSs and considered to be an important factor for the institutional capacity building in Somalia
- Ministers considered the FMSs established State Banks on their own which closely cooperates with the central bank at the Federal level to avoid the use of private commercial banks and to make available banking services to the public in every region
- Ministries of Finance led by the FGS Ministry of Finance should take the lead and play an active role in the discussion on natural resources sharing by cooperating with the various relevant ministries at different levels
- The FMSs agreed to secure and be part of the SCORE project Implementation Unit (PIU) for the purpose of common benefits at all level of governments
- The upcoming meeting in August 2018 of the Intergovernmental Finance Ministers Forum (IGFFF) chaired by FGS Minister of Finance would invite the respective Ministries of Fisheries of both federal and FMSs to take part in the discussion.
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