Nimule bridge, a stone throw away from Ugandan border side post, Elegu - Courtesy

The National Revenue Authority starts enforcing the increment of customs exchange tariffs on imported goods, amid concerns that the policy could worsen an already high cost of living in the country.

The Commissioner General of the Revenue Authority and the Commissioner for Customs Service division confirmed through two different circulars issued this week, that they are implementing the measure.

The decision was passed by the parliament and signed by President Salva Kiir on the 9th of June 2022, in line with the financial act 2021/2022.

The implementation of the tax will see the initial exchange rate of SSP.45 per dollar increased to SSP 90 per 1 US dollar.

Previously, traders pay 45 South Sudanese Pounds for every commercial goods worth of one dollar at the border.

But the new measure means traders have to pay 90 South Sudanese Pounds for goods valued at one dollar.

The decision was protested by importers and commercial truck drivers who accused the Commissioner-General of issuing an abrupt notice.

Many were also concerned that the increment will worsen the already high commodity prices in the market, as traders could imminently resort to doubling prices to compensate the hefty tax increment.

The Commissioner for Custom Service General Akol Ayii Madut also criticized the NRA boss Dr. Patrick Kennedy Mugoya, saying he took a unilateral decision without consulting him.

As result of the backlash, the National Revenue Authority extended the July 18^th deadline including of the 30 percent profit tax for another month until the end of August.

In a statement, the NRA said the purpose of this change is to gradually harmonize the customs value of internationally traded commodities with their actual values determined using the official exchange rate.

The country’s revenue collector added that the move will enable importers and exporters contribute their fair share of taxes to the government.

It was also seen to help the government improve on the provision of essential public services to all citizens.

However, NRA Commissioner-General Mugoya and Commissioner Akol Ayii reached a consensus after having locked horns previously on the issue.

In separate circular issued on Monday, the Commissioner for the Customs Service Division, Major General Akol Ayii Madut confirmed his concurrence with the new policy, and directed all the custom institutions to reinforce the law.

The tax increase comes at a time when the prices of goods and services have sharply risen in the country.

On the contrary, governments in the neighboring countries have waived taxes, fees, and levies on essential food commodities to cushion citizens from the high cost of living caused by several economic factors

Last month, the Kenyan’ government removed taxes, fees, and levies on essential foodstuff.