23rd March 2025
Make a Donation

Juba traders increase prices over customs duties adjustment

Author: Sebit Patrick | Published: February 19, 2025

Vegetables on sale at Konyo-Konyo market - credit | Moyo Jacob/Eye Radio | April 19, 2022

Commodity prices in Juba markets have reportedly increased in what some traders attribute to the increase in taxes and levies triggered by adjustments in the Finance Act 2024-2025 and introduction of a weighbridge in Nimule town.

Retail traders said the prices of basic commodities have shot up since the beginning of the February 2025, severely weakening the purchasing power of their customers.

Among essential food and non-food items that have greatly become unaffordable are maize flour, sugar and soap.

Kiir Nun Deng, a trader at Konyokonyo market, said the increasing cost is due to the adjustment of levies with the official exchange rate, as introduced in the financial year budget.

Deng pointed out that importers used to pay 300 South Sudan pounds per dollar in customs duty, but the rate has now been increased by 70 percent as of January 2025.

He revealed that a truckload of goods that they usually cleared at 2,000 US dollars now costs 7,000 US dollars to clear with the current rate.

“Last time they were charging, the rate of custom duty was 300ssp, now they changed it to 1,000ssp per dollar. The total cost of a whole truck was $2,000 by then. But now, the same cost is $7,000 USD. And it differs from truck to truck and which item you are carrying,” he said.

In November 2024, President Salva Kiir assented to the Financial and Appropriation Acts on November 25, therefore actualizing the fiscal year budget which imposed heavy taxation.

The financial act introduces tax increment in Customs Merchandise Conversion Rates, Personal Income Tax, Business Profit Tax, Excise Duty and Customs Levies.

Meanwhile, Deng said the increased levies and taxes mean they cannot charge customers at the previous prices unless they want to work at a loss.

The trader said that 50 kilograms of maize flour which used to cost 134,000 South Sudan pounds has now increased to 156,000 pounds. Meanwhile, 50 kilograms bag of sugar has increased from 250,000 pounds to 280,000 pounds.

“The cost now is very high. That’s why there is a slight increase in some communities. There are other duties imposed on us in the border, apart from the tariff or custom duty,” he added.

“There are other things that they have put in the in the border. The weighing bridge is one. It was not there before but now they have been introduced and you have to pay. There is some money that you have to pay for them.”

Another trader, James Ariak said some of them are buying from importers who have been excessively charged at Port Mombasa and Nimule border point.

According to him, this has prompted them to transfer the cost to buyers, leading to decreasing number of customers.

“There are hundreds of traders in the market. There is the first group of traders who bring goods from abroad. And there is the group of local traders who work in the market.”

“When we ask foreigners, they tell us that they have a double tax. There are goods that when you take them out of Mombasa you pay a tax. When you come to Nimule, you pay a tax. This means that there is a double tax process.”

“When you come here, you take the cost of your goods and add its price. When we come to the market, we see how much we buy and how much we should sell. We do not increase the price but add it by 2% and by 3%.”

 

 

Support Eye Radio, the first independent radio broadcaster of news, information & entertainment in South Sudan.

Make a monthly or a one off contribution.