National, News

Price surge linked to new Financial Act


By William Madouk


Enforcement of Financial Act 2023-2024 has resulted in a significant surge in merchandise prices due to the heightened taxes imposed on imported goods.

Deng Daniel, the Chairman of the South Sudan Clearing Agents Freight Forwarding Association, revealed that the parking yard is currently brimming with cargo, as numerous shipments are yet to settle their outstanding tax obligations.

“The implementation of the Financial Act 2023-2024, that was implemented starting on the 1st of November, it caught business people by surprise and of course, the volume of the taxes has increased,” said Daniel.

“So, many of these trucks that are parking here are yet to be cleared or are yet to be paid – the duties are yet to be paid by the business people.”

But Mr. Daniel cited that the parking yard never ran empty because as other trucks cleared their dues few more arrive.

He illustrated the increment in the new financial act compared to the 2022-2023 financial act.

“The previous financial act of 2022-2023 is different from this financial act of 2023-2024. One is that the actual rate of the custom was $90 per $1, 90 SSP per $1 and in the financial act of 2023-2024, it has been increased from 90 to 300 per $1,” he explained.

“Of course, that increment also has some impact, the financial act also has some increment. There are varies according to the goods that are being imported. So, there is total change and doubling taxes has been recorded,” Daniel noted.

Mr. Daniel claimed that double taxes could be the reason why commodities prices shoot the roof.

“Of course, as the traders and the business community, whatever you spend when you are importing the content – when you are importing goods, you put it on the prices of the goods,” he clarified.

“So, I think this should be the result of why the market price has increased.”

As citizens are grappling with high prices in the market, the country is also facing a serious SSP depreciation against the United States Dollar.

The latest report, the No. 1 Citizen Daily Newspaper established that in the parallel market, a dollar trades between 1,140 SSP and 1,210 SSP, while the Central Bank has not released its official updated rates.

As the exchange rates shoot up, some entrepreneurs are now feeling the pitch of the depreciation.

Simon Thon, a money transfer agent in Munuki’s Suk Libya, told this outlet last week that to buy a float for his business, he must use US Dollars, but to acquire a note of $100 he pays 117,000 or 118,000SSP.

The trader fears that if nothing changes, many business people, him inclusive will close down their ventures.

South Sudan Financial Act 2023-2024 sets forth proposals for taxes, fees, and other levies, amends Related Taxation Laws, and covers personal income tax, business profit tax.

It also includes; advance payment of income tax on imported goods, taxes on goods and services such as sales tax on produced goods, and sales tax on hotel, restaurant, and bar services.






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