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Sudan’s state-owned enterprises do not pay income taxes: official

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Headquarters of GIAD Motors Company in KhartoumJune 18, 2020 (KHARTOUM) - The Sudanese government said that 638 of 650 government-owned companies do not pay income taxes to the Ministry of Finance, including 200 belonging to the military sector.

On Thursday, the Economic Emergency Committee held a meeting chaired by its co-president and Prime Minister Abdallah Hamdok to discuss recommendations submitted by several subcommittees on the government-owned companies affiliated to many ministries including the army and security apparatus.

"There are 650 government-owned companies of which 431 are companies affiliated to ministries and executive bodies, and 200 companies belonging to the defence industry and the regular forces," said the Cabinet, in a statement released on Thursday:

"Only 12 of these companies tax on revenue to the Ministry of Finance and Economic Planning," added the statement.

Adam Harika, the committee’s rapporteur, said that the meeting recommended preparing proposals and draft laws for a comprehensive reform that address the governance gap of government-owned companies.

Also, the committee proposed to liquidate a large number of these enterprises, either because they do not work at all, do not achieve profits or there is no justification for their ownership by the government.

He expected that companies be classified into three categories, the first includes public interest enterprises, the second category for companies that have no reason to be pubic firms and should be privatized, while the third category includes enterprises that have not a real impact with a high administrative cost that amounts some times to 60% of its budget.

The committee furthermore agreed to review the manner in which Mobitel, a state-owned telecommunication enterprise, was sold and decided to transfer its file to the Empowerment Removal Committee.

Also, it decided to review how the assets of the Sudan Post and Telegraph Corporation were sold by the former regime, the same for the licenses granted to telecommunications companies, their work and their contribution to the national economy.

In the same vein, it decided to form a mechanism to follow up Sudanese investments in the telecommunications sector abroad in countries like Senegal and Mauritania and others.

(ST)

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  • 21 June 15:19, by Fathi

    Make all of them pay taxes. Billions on untaxed $ over the past 30 years

    repondre message

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