Somalia has finally reached a decision to double the taxes levied on Khat which is imported from the neighboring countries, Kenya and Ethiopia.
The hike on taxes levied on the leafy stimulant put a lot of distress to Khat exporters who are already coping with the strain of the suspension of the business due to Covid-19.
A meeting convened between Finance minister from regional states along with the minister for Federal level reached the unanimous decision on Tuesday to increase Khat taxes from $ 2.5 per Kilogram to $ 4.
There is Khat ban in place in Somalia whilst the country has lifted restrictions on international flights.
Lobbyists against Khat in Somalia have intensified their campaign as they urge the government to completely put ban on the leafy stimulant.
The government of Somalia is estimated to have earned $ 14 million from taxes levied on Khat in 2020.