Africa-Press – South-Sudan. The National Cabinet has resolved to end all non-statutory tax exemptions as part of government efforts to strengthen the collection of non-oil revenue.
The decision followed a memorandum presented by the Minister of Finance and Planning, Dr. Bak Barnaba Chol, during a Council of Ministers meeting on Friday.
Speaking to the state-owned South Sudan Broadcasting Corporation (SSBC) on Friday, Minister of Information, Communication Technology and Postal Services, Ateny Wek Ateny, said the move was necessary to address revenue leakages that have significantly affected government operations.
“The government has resolved to end non-statutory tax exemptions in order to strengthen non-oil revenue collection,” Ateny said.
He disclosed that exemptions on alcoholic beverages have been specifically revoked, noting that such exemptions had led to massive revenue losses over the past year.
“For almost a year, nearly 50 percent of the potential revenue was lost to exemptions, meaning the government was only collecting half of what it should have received,” Ateny explained.
According to the minister, the imbalance has severely hampered the government’s ability to mobilize resources needed to deliver essential public services.
“The Ministry of Finance, in its urgency to collect non-oil revenue, will not allow alcohol to be exempted from taxes,” Ateny said.
“With these exemptions in place, the government’s ability to raise revenue critical for strengthening the economy has been undermined.”
He emphasized that the new directive will enable the government to meet its key obligations, particularly the payment of salaries for civil servants and organized forces.
“The decision taken by the Council of Ministers is that the Ministry of Finance should prioritize the payment of salaries and government operations,” Ateny said.
He added that the Ministry of Finance has been instructed to suspend all claims not directly related to salaries during salary payment periods to ensure that limited resources are directed toward public sector welfare and state stability.
Ateny further revealed that the Ministry of Finance has been directed to carry out reforms within the South Sudan Revenue Authority and to immediately stop and revoke all non-statutory tax exemptions.
“The Ministry of Finance is to make reforms in the South Sudan Revenue Authority and therefore stop and revoke all non-statutory exemptions with immediate effect,” he said.
Source: Eye Radio
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