Patrick Mugoya, the Commissioner-General of the National Revenue Authority - Credit | Moyo Jacob/Eye Radio | May 12, 2022

The Commissioner-General of the National Revenue Authority has issued a circular revising and elevating several taxes, fees, and levies with effect on the 22nd of August.

In the notice dated July 15, the Commissioner General, Dr. Patrick Kennedy Mugoya directed all custom institutions tasked with revenue collections in the country to reinforce the law without hesitancy.

Dr. Mugoya’s circular increases the custom valuation levy by 100% increase.

“The exchange rate for conversion of merchandise values from USD to SSP has been increased to SSP 90 per USD 1(from SSP  45 per USD 1 as was the case previously,”reads the circular widely circulated on social media.

Mugoya’s circular also instructed the heads of Domestic Tax Revenue, Customs revenue, and their respective staff that the Financial Act 2021/2022 is now in force.

“Consequently, they are hereby directed that with effect from 18th July 2022, taxes, fees, and other levies of the National Government throughout the Republic shall be as stipulated in the Financial Act 2021/2022 until such time the Act is repealed and replaced by another law,” said Mugoya.

The Commissioner General’s decision is feared will have an adverse effect on consumers’ purchasing ability.

For his part, Daniel Deng, the chairperson of the Nimule border clearing agents said the circular has affected the clearance of imported goods, leaving commercial trucks stuck at the custom yard since Monday.

“We were surprised with the new change, because there was no any official communication given to us, so since Monday and then on Tuesday and Wednesday, there was no work because the owners of the good could not afford the fee as it was doubled,” said Deng.

The border official also said the new order will compel traders to compensate their loses by increasing the prices of commodities.

South Sudan is a landlocked country and relies solely on imported goods and construction materials from neighboring countries and beyond.

Meanwhile, the Importers and Transportation associations have protested Mugoya’s decision saying that will an increase the prices of imported goods in the country placing the burden on consumers.

With this increase, 1 U.S. dollar will sell at 90 South Sudanese effective August 22 from 45 South Sudanese in previous periods.

The Commissioner General circular also set a business profit tax at a flat rate of 30% irrespective of the business size or type.

“All businesses liable for BPT shall be subjected to a flat BPT tax rate of 30% regardless of the size or type of the business”, end-of-quote

Furthermore, the circular raises consultancy fees or remuneration for part-time work to 20% from 15% in the previous, which is 5% more.

Another contentious area that Mugoya’s circular touches on is pension income the commissioner wants to tax employees’ pension income by 10%.

The taxman tax increase comes at a time when the prices of goods and services have already skyrocketed in the country.

In neighboring countries, governments are removing taxes, fees, and levies on essential food commodities to cushion citizens from the high cost of living caused by several economic factors

This week, the Kenyan’s president government removed taxes, fees, and levies on essential foodstuff.

Yesterday, President Kenyatta met with millers and agreed to subsidize maize flour from $2 per kg to $1 per package.

Read the circular in PDF document ordering for the 100% increase of custom taxation.

PDF Scanner 21-07-22 12.20.23