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S. Sudan finance ministry resolves tax differences with states

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January 27, 2013 (JUBA) - South Sudan’s Finance Ministry says it has completed a move to harmonise differences that previously existed between the central government and country’s ten states over management of locally generated tax revenues.

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Kosti Manibe, South Sudan’s Finance Minister, August 8, 2012 (ST)

In a statement extended to Sudan Tribune, the ministry said it reached an understanding with all South Sudan states’ finance ministers, and agreed that the latter will provide additional compensation under the centralised collection policy.

Under this arrangement, however, the proposed surcharge on personal income tax will reportedly be removed from pending legislation, thus preventing state-level employees from paying national and state income tax.

This retention, the ministry argues, will increase funds available to the states and assist in meeting their budgetary needs.

“This agreement allows us to continue to harmonise our federal and state tax systems and ensure that we do not return to the harmful system of roadblocks and multiple layers of taxation, thus helping our economy and country grow toward self-sustaining levels,” partly reads the statement, signed by South Sudan Finance Minister, Kosti Manibe Ngai.

The ministry, however, insists the national directorate of taxation will continue to collect personal income tax from private employers, including Non-Governmental Organisations (NGOs), as the exclusive authority for those collections.

In addition, the directorate and the state taxation authorities, it says, will support the centralised collection policy, coordinate and cooperate in improving tax collection all over the country’s ten states.

Last year, the Governor South Sudan’s Central Equatoria state, Clement Wani Konga, threatened to withdraw his state from the centralised taxation system, claiming his administration had lost significant funds from locally collected revenues.

(ST)

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  • 28 January 2013 07:45, by Dinkawarrior

    Mr. Cowboy, we are still waiting for T-hiring of General Obuto Mamur, General Deng-Amoc-arab Kuoirot, and General James Gatduel Gatluak. Please Mr. President! Do us a favour!! We need those guys back or otherwise you we will put you in trouble. They deserve credits of Panthou(Higlig)!!!

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    • 28 January 2013 07:57, by Dinkawarrior

      Re-hiring of generals is needed as quickly as possible! We stand up together with those who do their jobs perfectly like the a nice mentioned generals! We are proudly about you on what you have done in Panthou(Higlig)! If Kiir want to be Uganda president then let him plays with the Fire but we are damn seriously watching at him!!

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      • 28 January 2013 08:03, by Dinkawarrior

        I mean the above mentioned generals! I don’t know what is wrong with keyboard? I didn’t said a nice?? Shit@@

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    • 28 January 2013 09:18, by municipal Government

      To: Dinkawarrior,
      You are right by now because the country is still facing more challenges with its neighbour North Sudan. You (Dinkas & Nuers)are the obstacles to all what is happening wrong in this country. Though your thought is helping, your system of Dinkas & Nuers couldn’t allow best things here to go well.
      Thanks,
      MG

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  • 28 January 2013 07:57, by Juba City

    Were there is money there are issues. its a human culture. thanks you resolved

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  • 28 January 2013 08:28, by municipal Government

    Dear Readers,
    How will the states develop if all taxation are under centralized system? What I know, Central Government should have limit taxation and the rest left for state development.
    Thanks,
    MG

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  • 28 January 2013 08:40, by Gaddfa

    the Government should give each state a chance to collect their taxes and use them for developing their respective state. but than again the central govt have right to have a share on the taxes as well because the are a part of of those states.

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    • 28 January 2013 09:40, by EES Kingmaker

      This is a good step that National Ministry of Finance and Economic Planning has made so far. Starving States from having enough revenue to fund their activities was not a wise decision taken early. Empowering States is the best way for this nation to move forward as we race against achieving Mellinium Development Goals(MDGs) come 2015.

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  • 29 January 2013 08:01, by Bol Pur

    Don’t think the name Dinkawarrior really mean anything to support peace in South Sudan. I would like to remind my brother who hide using other community stereotype title that commanding President to appoint people is not part of the system. I think you have been wasting your time and intellect by writing useless comments. To me it seem you are somebody love crisis and hatred among people of South.

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  • 30 January 2013 16:09, by Activist # 25

    I think the minister is making the right decision by accepting the states proposal. I am 100% in agreement with this his decision. We should applaud him for taking courage on this matter. Thank you Minister.

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