The Role of Mobile Money in Enhancing Tax Collection Efficiency in Galmudug State of Somalia

This study examined the role of mobile money in enhancing tax collection efficiency in Galmudug State of Somalia, where formal banking coverage remains limited but digital payment practices are widely used. The study adopted a quantitative explanatory design supported by secondary documentary analysis. Primary data were collected from 97 respondents, including taxpayers, business owners, traders, tax officers, civil servants, and mobile money agents. Descriptive statistics, reliability testing, Pearson correlation, and multiple linear regression were used to analyze the survey data, and the Ministry of Finance financial statements and budget-related reports were reviewed to assess domestic own-source revenue trends from 2019 to 2024. The findings show that mobile money usage was positively and significantly associated with tax collection efficiency. The regression model explained 54.1% of the variance in tax collection efficiency, and mobile money usage was a significant predictor. Respondents linked mobile money to faster payment, stronger traceability, better transparency, reduced manual inconvenience, and improved accountability. The study concludes that mobile money can support revenue administration reform when embedded in an integrated e-tax system with safeguards for cybersecurity, taxpayer identification, e-receipts, and automated reconciliation.

mobile money; tax collection efficiency; digital tax administration; Galmudug State of Somalia

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