Bosaso Port Trade Grinds to a Halt as New Tax Hike Threatens Puntland’s Finances

Bosaso (WDN) – Activity at Puntland’s main port in Bosaso has virtually stalled for nearly ten days following the government’s introduction of a new tax regime. According to business sources, the increases are as much as four times higher than previous rates—an increase they say is unsustainable.

Traders warn that if the policy remains unchanged, many importers may divert their shipments to other ports across Somalia, raising fears of a prolonged decline in cargo traffic through Bosaso.

The Port of Bosaso serves as the economic lifeline of Puntland and a critical trade gateway for much of central Somalia, facilitating the import of essential commodities including food, fuel, construction materials, and consumer goods—as well as the export of livestock, fisheries, and other locally produced products.

Its strategic location on the Gulf of Aden connects Somali markets to the Middle East, the Gulf states, and international shipping routes, generating substantial customs revenue, creating thousands of direct and indirect jobs, and supporting transportation, logistics, and commercial activities across the region.