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South Sudan’s finance minister says centralized tax collection system necessary

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October 28, 2012 (JUBA) – South Sudan’s Minister of Finance and Economic Planning, Kosti Manibe Ngai, defended on Friday the centralized system of tax collection in the country after threats by the Central Equatoria State governor to pull his state out of the centralized system.

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South Sudanese finance minister Kosti Manibe Ngai (ST)

Governor Clement Wani Konga on Tuesday accused the centralized tax collection officials of embezzling the collected revenues, declaring that he would deploy his state’s officials to collect taxes by themselves at the state’s international borders with effect from November 1, 2012.

He said his state has lost millions of South Sudanese pounds to this new arrangement where the state’s share of revenues had fallen sharply due to the centralized tax collectors who do not remit the money to the government’s coffers.

However finance minister Ngai in his response to governor Konga in a broadcasted statement on South Sudan TV on Friday said the centralized system of tax collection was necessary and should continue as it has avoided “anarchy” in the previous random tax collection system by different levels of government in the country.

He said too many self-appointed tax collectors had previously emerged from different levels of government and institutions including unauthorized individuals who collected taxes unprofessionally and illegally.

Lack of taxation revenues is widely blamed for the delay of salaries of both the civil servants and constitutional post holders. Employees of different institutions across the country have not received two-month salaries beginning from September.

The minister however refuted lack of revenues as the cause for the delay of salaries and instead blamed it on slowness by individual ministries and institutions to process their respective requests to release the salaries from the ministry of finance.

He said the money was available and ready for disbursement if requests were made by the individual institutions.

South Sudan lost 98% of its income in January when it stopped exporting oil through neighbouring Sudan, accusing Khartoum have confiscating its oil entitlements worth about US$815m and stops oil production.

In August 2012 the two countries, under the facilitation of the African Union High Level Implementation Panel reached a deal, which could see the young nation pay US$9.10 for every barrel of oil produced in Upper Nile and $11.00 for every barrel produced in Unity State. In addition Juba also offered $3 billion as a transitional financial assistance to Sudan.

Under the final deal signed on September 27, South Sudan will pay between $9.10 and $11 a barrel to export its crude through the north. Juba will also pay $3.08 billion to help Sudan overcome the loss of three quarters of oil production due to southern secession.

(ST)

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  • 29 October 2012 07:13, by majok akol

    you are right honorable minister even the governor wanted embezzled taxes he claimed

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    • 29 October 2012 07:30, by Force 1

      Another primitive with the same highly irrational idea! Where in the world; the state has to enforce its own laws against the country’s federal government? The schools where these buffoons went to has to be interesting!

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      • 30 October 2012 00:34, by jur_likang_a_ likan’g

        Mr Force 1, The two levels of government should work in a harmonious situation. In decentralised system of government, states have the right over resources from their state as well the resources of the whole nation. Corruption in the country should not be condoned. Equatoria needs additional financial resources to develop. Wani is right.

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    • 29 October 2012 08:13, by Boyone

      I think Governor Kang has failed to understand the national borders are federal governed and not states level. I thought the federal finance minster would have make him understood his limitation on that matter since he doesn’t have education values to know the different between Taxes inside the states and national levels

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    • 15 January 2013 14:43, by gamchachp

      Your knowledge of this subject comes through clearly in this article. I love to read this kind of articles, I hope you will update it. Thank you for sharing it with me.
      David

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    • 30 March 2013 21:12, by syklops
  • 29 October 2012 07:59, by dinkdong

    Nobody is right. The damn heads of the state (the president through all the freaking governors & ministers) were the first to laid bad examples in looting the federal money in past 5 years. It seem it’s a country one can do anything to get rich overnight

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    • 29 October 2012 08:49, by Aarai Baka

      State revenues are difference from federal, State income taxes and federal are much difference. Let State collected their revenues difference, some other States collected more while other charged less. Stop being tribalist than being nationalist. State governor r not same as u guys thinks.

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  • 29 October 2012 08:01, by dinkdong

    Nobody is right. The damn heads of the state (the president through all the freaking governors & ministers) were the first to laid bad examples in looting the federal money in past 5 years. It seem it’s a country one can do anything to get rich overnight

    repondre message

  • 29 October 2012 08:01, by pabaak

    the Governor thinks his state is fall out of loop of other nine States or what? don’t he also think other state have their own resources as the central state has?, and if all state will enforced their own tax system then what’s mean for sovereignty of country?, this is encouraging chaos and lawless in the country already has similar situation

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  • 29 October 2012 08:22, by Deng

    Mr CES Governor, I support you in fighting corruption but this should not be dealt with in a state to state basses. You are asking for just under 2% tax revenues when oil revenues from Unity and Jonglei states accounts for over 80% of Gvt spending in CES. How about if Unity state and Jonglei limit their oil wealth for their states, whats going to happen in Juba? or rather CES.

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  • 29 October 2012 08:22, by Deng

    Mr CES Governor, I support you in fighting corruption but this should not be dealt with in a state to state basses. You are asking for just under 2% tax revenues when oil revenues from Unity and Jonglei states accounts for over 80% of Gvt spending in CES. How about if Unity state and Jonglei limit their oil wealth for their states, whats going to happen in Juba? or rather CES.

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  • 29 October 2012 09:15, by Morthon Akol

    I don understand what kind of government we have it in Republic of South Sudan? comrade governor Konga tell the national government that he don wont Centralization tax collection. before independent those tax use to be collected by Khartoum why Clement was there.

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  • 29 October 2012 09:49, by Morthon Akol

    But again Mr. Minister we need to lead our nation by saying truth to our people. you said that the people didn’t get pay is not because there is no money while all institutions said that the finance did give money. which one is wish?

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  • 29 October 2012 13:10, by Makunon

    Mr. Governor is wrongly advised by socall Advisors as claimed by Kiir when he said, I was misled by economic expert that we have money we can use for five years. Anarchy sort of taxes collections is also a corruption which Gr promised to fight.And no for that.

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  • 29 October 2012 13:19, by Emporio

    what is centralization,i think the government of south need a lecture to understand what is centralization mean in federal government how come they put centralized tax system and we have state government and federal government, i think the mentality of old generation in 21 century is long fit to issue of new born nation

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  • 29 October 2012 17:22, by Mapuor

    Eastern Equatoria governor is right as revenues are not remitted to the government chess

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  • 29 October 2012 18:26, by Kikiji longiro

    Dear Junubian,
    Many of you look decieving yourselves from your zero levels of understandings. Ask a Country under states like USA before barking for where every states taxes belongs to. Is the taxes of every states build the country or every states taxes need the help of the Central government to expand building it,s state? Clement Wani.(A RAT THAT IS SURVIVING WITHIN SNAKES IN A HOLE.)
    WANI

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  • 29 October 2012 19:27, by Kikiji longiro

    We are not supposed to blame Clement Wani until Kosti Manibe because we are using what we have collected from the street without our propare knowledge in it to manage our Country.What is found in the street,always work with the knowledge of the streets.
    CLEMENT WANI

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  • 29 October 2012 19:30, by Kikiji longiro

    If we want Kosti to tell us the truth,we are suppose to sent him for specially economical courses in USA a country using states.So that he will not be manouevred by others but a person which is going to work for people,s relates.
    CLEMENT WANI

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  • 30 October 2012 01:27, by Nguetbuny de Luelpiny

    Federal can divide the Taxes Revenues into percentage for Province and Federal. The Taxes Revenues should be splits up federal 60% while provinces 40% to build local Institution. This can be done by one Institution like federal Sudan Revenues Agency (SRA). They can watches every money spending for the whole country. They can monitors all spending and report it back to SRA.

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  • 30 October 2012 03:50, by Augustino

    No Kosti there is no centralised taxation in this world only in the corrupt systems, what is there is the level of taxation. there is federal tax and state tax where the central equatoria state have right to collect the two taxes separately and remit the federal tax to SSTO and retained state level tax. No external tax collectors to collect tax in the state but the state taxation authorities only.

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