Home | News    Friday 16 September 2011

South Sudan steps up efforts to end tax collection malpractices

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September 15, 2011 (JUBA) – The newly born Republic of South Sudan says it will seek to end malpractices in the tax collection system which have resulted in the loss of hundreds of millions of dollars through unauthorised tax collectors.

A committee formed by the President of the Republic, Salva Kiir Mayardit, to investigate the situation has revealed that unauthorised multiple levies and taxes on essential imported goods and services are also causing skyrocketing of prices in the new country.

The committee, chaired by the former minister of Energy and Mining, Stephen Dhieu, who is also the newly appointed minister of Petroleum and Mining, reported to an economic cluster meeting chaired by the Vice President, Riek Machar, that the committee found 44 authorised and 65 unauthorised tax collection institutions operating in Eastern and Central Equatoria states alone.

Different unauthorised agencies and individuals have set up tax collection points, demanding "tax" from business people who import goods, but then are pocketing the money. Officials also revealed that even some of the authorised personnel of various institutions only report some of the revenues to the government chest.

Hundreds of millions more have been lost to the indiscriminate exemption of taxes since March this year, some of which were unlawfully done, according to the officials.

After lengthy deliberations by the government’s economic cluster since last week, the body on Thursday confirmed to review the policy on exemptions at the next Council of Ministers meeting.

It was also resolved that a revenue authority be established at the national and state levels and harmonise systems of tax collections between the various levels of government.

Immediate removal of unnecessary checkpoints and roadblocks as well as elimination of illegal tax collecting units from all border entries and checkpoints was resolved.

There is also a need to establish a mechanism for screening and licensing of clearing agencies and encourage the establishment of bank branches at international borders for direct deposits and wire transfers. The need to use a
Letter of Credit by the Central Bank in the export and import processes was also encouraged.

It was also resolved that the national ministry of finance with involvement of the national security and police regulate the transfers.

More than 60 international entry points were also identified across all ten states of South Sudan except Lakes state which has no international border. The leading among them is Upper Nile state with 25 entry points with its international borders with Ethiopia and Sudan where four states have borders with the state.

South Sudan is largely dependent on oil revenue, which accounts for 98 percent of its budget. With some reform in the tax collection system, officials hope that when implemented the revenues collected from non-oil revenues will increase.

(ST)

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The Sudan Tribune editorial team.
  • 16 September 2011 08:53, by Mi diit

    Good job. Bring the culprits to book and implement the new measures immediately.

    repondre message

    • 16 September 2011 09:15, by MINDED.DUDE

      These are all Dinka who introduced this shit to this country.
      In 1998. i traveled from chukudum to Lokichoggio,and i had 20 tobaccos ,and when i reached Loki border,i remained with one tobacco. Dinka took all of them except one.
      Corruption started from Dinka Blood.

      repondre message

      • 16 September 2011 09:22, by Ahmed Chol

        Thanks to Riek and Kiir

        In fact most well developed countries live on taxes. Decent taxing is what supports those countries that don’t have oil. Ours should not be an exception. This idea of few people pocketing tax money is not. Better we don’t tax at all if the money is ending up in few people’s pockets.

        I strongly oppose this kind of taxes all across South Sudan because of the following reasons:
        1) the collected money from taxes goes into the hands of few individuals like commissioners, police officers or governors who are already in better financial position than the general public.
        2) there is not one single thing done with the money for the public like school, or hospital in any of the ten states.
        3) Too much taxation from multiple check points hurts the economy because prices become higher in the local markets and only the poor population suffer by paying higher prices which makes the pound useless due to inflation.

        Taxation is good only when the tax money is used for public benefit. Most of the current officials in South Sudan don’t have motivation of public interest but personal interests. This is sad.

        Ahmed Chol, whatever begins in anger ends in shame

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      • 16 September 2011 09:27, by Kawaja Mikis

        My friend, corruption is not Dinka doing it.It is ironic because even you, is the same case you are doing.

        In general problem, corruption is every where in South Sudan, not Dinka.

        repondre message

      • 16 September 2011 09:49, by Dinka Dominated SPLA/M

        Mad dog.
        I know you son of arab whor will never going to shut your ugly mouth off after Dinkas who liberate you out of slavery.
        I am wondering how would you have been if Dinkas were on the side of Sudan, i think you would have beeb use as a camel by arab in the desert for goods carries.

        shame on you son of LRA of Uganda rebel.

        repondre message

        • 16 September 2011 10:05, by Dakkin

          Cut the head of Kiir and all miseries are gone

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          • 16 September 2011 10:36, by Alier42

            @ Dakkin

            your i dea is welcomed but you need prepare your mother take oath of the office of the president,after you had cut off Kiir,s head.

            repondre message

          • 16 September 2011 14:57, by Antigraft

            Guys let us give constructive opinions here. This is not a joke but the fact should be accepted. Weather certain tribe is responsible for certain weakness in a system or not is a matter of prove. But sincerely most of tax collectors are Dinkas. So if there is any problem Dinkas will be blamed first but let us isolate individuals from tribe. The fact that many thing bad is happening is because Dinka’s tradition permits impunity just like their kins the Nuer, the shiluk, Jurchol, Acholi, Pari, Anyuak etc. Non of these tribes can be trusted with leadership. They are so tribal that they are only there to corrupt system. Advice to government is to investigate this tax exemption, beacause government is lossing billions of pounds in this exemption scandal. Most Dinkas boys here in Juba do not want to do proper work just sitting from morning to sun set gossiping and conspiring on how to get this exemption letter and sell them to wealthy businesspersons. How comes that prices of cements and other building materials keeps on hiking yet they are exempted. This is thieving behavior by some Dinkas not all. The under secretary of the Ministry of Finance should be questioned on the issue of exemption. Exemption should be abolished and intead cutting taxaes on basic commodities but not exemption. People are abusing this offer by the government. Government should charged everyone including Ministers and some prominent business persons like Nyandeng De MAbior.

            repondre message

        • 16 September 2011 15:19, by Brainy

          Mr. Dinka Dominted SPLA/M,

          I really feel for you bro. Every time you are on the receiving end by being taken to task with any mention of Dinka. You surely need to realise that there’s no special tribe in South Sudan. No one tribe is as corrupt as another. Whoever pins corruption on a single tribe is a thick-headed who knows nothing about nationalism but his belly filled with looting.

          Let nobody be cheated that a tribe is corrupt. I have seen it all bro. To others, a mention of a tribe, has become the best way of provoking a debate. You even sound like a fool every now and then reminding your offenders how your tribe liberated others. They may have heard that a million times.

          Outside there we are not known by tribe but by country. So please save your energy and show them that your past this and discuss issues.

          God Bless South Sudan!

          repondre message

          • 16 September 2011 17:00, by Aleu Majok II

            @Brainy,
            Thanks for your comment. That is very far-sighted of you and really brainy of U as ur name suggest.
            One thing many people have failed to understand is how properly one ought to articulate a blame on some one or a group of people for their wrong doings. That is what Minded.Dude has exactly done. But on social sites like this one we ought not go by how others rudely and myopically comment negative about others because if they wanna correct the vice being made by others they will articulte it convincingly and diplomatically. Besides the truth is that those whose comments about others are always tribalistic, it is them who are in real sense tribalistic and they are actually showing to others without fear how they really behave and treat others outside there given the fact that nobody will know who they are as they cover themselves up with nick names. That is what most people with nick names intend to do on social sites when they signed up, pouring our words with tribal prejudice thinking that they feel releived of their tribalistic feelings. this doesn’t work but instead those on the defensive may hurt their feelings with the facts they didn’t know or in the same way they did.

            On over all, it is good to disregard such people or comments that take us nowhere but to the level of fools so better we carry on as we really are but handling only those that are offending yet logically and diplomatically articulated.

            repondre message

    • 16 September 2011 09:19, by Kawaja Mikis

      Well done job, this time the government of Republic of South Sudan, should employe the qualified personnel as well as strictly observed.

      repondre message

  • 16 September 2011 09:56, by Bush

    I’m convinced that the corruption in South Sudan is Dinka making because they were the leaders at the time and they didn’t show people the example of how to fight corruption because they don’t want to punish their fellow tribesmen. Just look at what is happening in Kaya and Nimule borders, how can the tax payers feel that their money is going to the right channel? or we don’t even pay taxes in South Sudan, because if people are really paying taxes like in other countries then they should ask where is there money going.

    Corruption has planted a deep root in South Sudan and it’ll take decades to uproot them all.

    repondre message

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