Traders pay over 16 taxes in Sudan
Aug 18, 2008
UGANDAN traders pay over 15 taxes in Juba, a situation which may force them to stop their work. One of the traders, Patrick Ahaisibwe, a hardware dealer, said the taxation system of the Government of South Sudan was exploitative.
By Kiganda Ssonko
UGANDAN traders pay over 15 taxes in Juba, a situation which may force them to stop their work. One of the traders, Patrick Ahaisibwe, a hardware dealer, said the taxation system of the Government of South Sudan was exploitative.
“From the border post, mainly at Nimule up to Juba, a trader goes through over 15 points and pays various taxes, which make transactions complicated and time-consuming,†Ahaisibwe, who came to The New Vision offices with tax receipts, said.
He said on entering Sudan, they are charged customs duty and commerce tax.
Ahaisibwe said last November, the administration of the Eastern Equatorial State under the South Sudan government introduced a state development tax on all goods going through it. Ugandan goods go through this province.
“We also pay for road toll, which varies according to the vehicle’s weight. It is paid every time a vehicle enters Sudan. There are also temporary road licences, which last one month. This doesn’t depend on how many times a truck crosses the border,†he said.
Ahaisibwe said after clearing these taxes, they pay other charges to traffic police some few kilometres away from Nimule.
“These traffic officers verify all the tax clearance papers and visas,†he said.
After clearance, the traders move on and face another State Development Tax at the point of destination, usually Juba or any other towns where someone may be heading.
“A bag of cement is charged $1,while timber is charged $2.3, yet it is supposed to be $0.8,†he said
There is also a new inspection fee of between $32-$65 levied by the National Bureau of Standards on every consignment of goods entering Juba or any other town.
“After this clearance, one goes through six registration points and pays various charges at each. They include security, land use, driving a foreign vehicle, customs and others,†he said.
“At the security registration point, we pay $5 for registering the vehicle entering the town, then we pay another $5 for another registration. At the customs registration point, we pay $5 for another registration of the vehicle followed by charges of between $10-$50 for another registration at a security check-point at the River Nile bridge near Juba.â€
“After crossing the bridge, there is a security point where one pays for road usage or land use. This is usually between $10-$30 depending on the vehicle’s size and goods it is carrying. This is levied although a vehicle has already been charged road toll fees and paid for a temporary road licence. There is also registration of the vehicle with the traffic police at a fee of $10, plus $20 for driving a foreign-registered number plate, which is a daily fee as its receipt lasts for one day.â€
He gives an example of a trader with 1,000 bags of cement whose factory price is $13 per bag: “Such a person pays $390, which is 3% customs duty at Nimule, 2% commerce tax worth $260, state development tax of $130, a road toll fee for a 50 tonne-carrier of $50, a temporary road licence of $40 a month and police registration at Nimule of $5. Another development tax of $1,000 is paid in Juba, a second commerce tax of $650, National Bureau of Standards $65 and $45 for the six various points of vehicle registration at Juba.â€
Ahaisibwe said the government of South Sudan should scrap some taxes because they are unfair and duplicated.
He said the 10% charge for passing through the Eastern Equatorial State, the road licence fees, traffic police charges, land use fee and foreign vehicle registration fees should be scrapped.
He said governments of Uganda, Kenya and Southern Sudan should form a trade negotiation taskforce.
Ahaisibwe said the authorities knew about the taxes but hadn’t helped despite numerous promises.
The director of trade fair exhibitions in Southern Sudan, Christine Ijino, asked the traders to write their grievances.
“We shall look into them and design a solution that benefits us and protects our interests as a government. Southern Sudan is going through many changes. There are many problems and forces that may affect the business sector but we strive to handle them once they come to us,†Ijino said on phone from Juba.
UGANDAN traders pay over 15 taxes in Juba, a situation which may force them to stop their work. One of the traders, Patrick Ahaisibwe, a hardware dealer, said the taxation system of the Government of South Sudan was exploitative.
“From the border post, mainly at Nimule up to Juba, a trader goes through over 15 points and pays various taxes, which make transactions complicated and time-consuming,†Ahaisibwe, who came to The New Vision offices with tax receipts, said.
He said on entering Sudan, they are charged customs duty and commerce tax.
Ahaisibwe said last November, the administration of the Eastern Equatorial State under the South Sudan government introduced a state development tax on all goods going through it. Ugandan goods go through this province.
“We also pay for road toll, which varies according to the vehicle’s weight. It is paid every time a vehicle enters Sudan. There are also temporary road licences, which last one month. This doesn’t depend on how many times a truck crosses the border,†he said.
Ahaisibwe said after clearing these taxes, they pay other charges to traffic police some few kilometres away from Nimule.
“These traffic officers verify all the tax clearance papers and visas,†he said.
After clearance, the traders move on and face another State Development Tax at the point of destination, usually Juba or any other towns where someone may be heading.
“A bag of cement is charged $1,while timber is charged $2.3, yet it is supposed to be $0.8,†he said
There is also a new inspection fee of between $32-$65 levied by the National Bureau of Standards on every consignment of goods entering Juba or any other town.
“After this clearance, one goes through six registration points and pays various charges at each. They include security, land use, driving a foreign vehicle, customs and others,†he said.
“At the security registration point, we pay $5 for registering the vehicle entering the town, then we pay another $5 for another registration. At the customs registration point, we pay $5 for another registration of the vehicle followed by charges of between $10-$50 for another registration at a security check-point at the River Nile bridge near Juba.â€
“After crossing the bridge, there is a security point where one pays for road usage or land use. This is usually between $10-$30 depending on the vehicle’s size and goods it is carrying. This is levied although a vehicle has already been charged road toll fees and paid for a temporary road licence. There is also registration of the vehicle with the traffic police at a fee of $10, plus $20 for driving a foreign-registered number plate, which is a daily fee as its receipt lasts for one day.â€
He gives an example of a trader with 1,000 bags of cement whose factory price is $13 per bag: “Such a person pays $390, which is 3% customs duty at Nimule, 2% commerce tax worth $260, state development tax of $130, a road toll fee for a 50 tonne-carrier of $50, a temporary road licence of $40 a month and police registration at Nimule of $5. Another development tax of $1,000 is paid in Juba, a second commerce tax of $650, National Bureau of Standards $65 and $45 for the six various points of vehicle registration at Juba.â€
Ahaisibwe said the government of South Sudan should scrap some taxes because they are unfair and duplicated.
He said the 10% charge for passing through the Eastern Equatorial State, the road licence fees, traffic police charges, land use fee and foreign vehicle registration fees should be scrapped.
He said governments of Uganda, Kenya and Southern Sudan should form a trade negotiation taskforce.
Ahaisibwe said the authorities knew about the taxes but hadn’t helped despite numerous promises.
The director of trade fair exhibitions in Southern Sudan, Christine Ijino, asked the traders to write their grievances.
“We shall look into them and design a solution that benefits us and protects our interests as a government. Southern Sudan is going through many changes. There are many problems and forces that may affect the business sector but we strive to handle them once they come to us,†Ijino said on phone from Juba.