Mogadishu(Mogadishu24)-The Somali Bankers Association and major telecommunications companies, including Somtel, Amtel, and Hormuud, have distanced themselves from claims that they are beneficiaries of the Value Added Tax (VAT) imposed by the Somali Federal Government.

The clarification comes in the wake of threats from Al-Shabaab, which urged the public to withdraw assets from banks in protest against the VAT.

In a joint statement, the companies emphasized that they have no financial interest or partnership with the Somali government concerning the VAT collection. “Somali Banks and Telecommunication companies hereby confirm that they don’t have any partnership with VAT currently taken from individuals or businesses, now or before,” the statement read.

This statement follows reports of disputes among traders in the Benadir region, who demanded a quota from the government for the VAT processed through their systems. The 5% VAT imposed by the government has stirred controversy and concern among the public, with fears that Al-Shabaab’s warnings could lead to mass withdrawals, potentially causing financial instability.

The developments also come amid Al-Shabaab’s alleged arson attacks on markets in Garasbaley district and Ceelasha-biyaha, both located near the capital, Mogadishu. These incidents have heightened tensions and uncertainty in the region.