It is clear that the worldwide outbreak of Covid-19 has affected and continues to affect the Somali economy in general and Puntland in particular as it has the entire world economy. The main objective of this report is to present and inform decision makers on the economic impact of COVID-19 on Puntland’s economy to enable them to develop effective, appropriate and real-time policy options to minimize the level of the potential economic consequences from the current crisis.

Taxes are the most important source of public revenue (funds) for the government. Tax is a compulsory contribution (payment) from an individual (taxpayer) to the government to cover the general expenses of the state which are incurred for the public good or in the interest of all.