NRA boss says lack of non-automated tax collection system is making difficult to identify tax faulters [photo: coutresy]

The Commissioner General of the National Revenue Authority has said it is hard for the institution to collect taxes from UN contractors and NGO workers in South Sudan.

Simon Akuei Deng said even though UN agencies are officially exempted from direct taxes, individuals and companies working with them are avoiding tax payments.

He added that these groups are taking advantage of the country’s weak and non-automated tax collection system.

“On how we can collect taxes from PIT with the UN system, we also have an issue on how we can collect taxes from contractors that are working with the UN agencies.
“…there are so many other taxes that are the UN agencies are exempted from. But it has been very difficult for us to hold a staff of an NGO, of a UN agency to pay taxes,” Deng explained.

The tax chief said the Authority has observed that many workers under UN and NGO contracts do not pay Personal Income Tax (PIT), which is required by law.

“You know the system in this country is not yet automated so that we can be able to know who have actually paid taxes today, and who actually did not pay taxes yesterday. So, there are issues of non-compliance on PIT and on contractors who are working with the United Nations,” he said.

Deng called on embassies and NGOs operating in the country to support government’s efforts to improve tax collection and raise non-oil revenue.

Last month, he announced that the Authority was given a target to collect 200 billion South Sudanese Pounds before the start of the 2025-2026 financial year.

He said the Ministry of Finance and Planning instructed the Authority to collect 90 billion pounds every month.

In February this year, the Economic Cluster revealed that several government institutions were not complying or only partly complying with the rules on submitting revenue to the Ministry of Finance.

Some of the non-complying institutions include the Ministries of Wildlife, Tourism and Conservation, Electricity, Environment and Forestry, Civil Defense, Education, Lands, Health, and Finance, as well as the South Sudan Prisons Service.

Other public bodies on the list are the South Sudan Media Authority, Roads Authority, Urban Water Corporation, and Juba Teaching Hospital.

Meanwhile, partially complying institutions include the Ministry of Justice and Constitutional Affairs, National Communication Authority, Ministry of Trade and Industry, and South Sudan Civil Aviation Authority.

Others are the Directorate of Traffic Police, Petroleum Ministry, and the Directorate of Civil Registry, National Passport and Immigration.

Deng said the 200-billion-pound target is a test for the country to rely on non-oil revenue and reduce its dependence on oil income.

He said reaching this goal will be a big achievement for the National Revenue Authority and the Ministry of Finance.