National, News

Gov’t tough on tax remittance

By Kei Emmanuel Duku

 

Economic Cluster has identified 15 government agencies that have failed to fully remit revenue to the Ministry of Finance and Planning, as legally mandated.

In a document released by Minister of Cabinet Affairs, Dr. Martin Elia Lomuri, the Economic Cluster has directed the agencies to immediately deposit all outstanding dues into the Ministry of Finance and Planning’s bank account.

The circular details that agencies that did not comply include the Ministry of Land and Housing, Juba Teaching Hospital, South Sudan Electricity Corporation, South Sudan Urban Water Corporation, Ministry of Finance and Planning, National Ministry of Environment, Forestry, and Ministry of Wildlife Conservation and Tourism, among others.

Despite the non-compliance by some revenue-collecting institutions, the Minister’s circular acknowledged seven government entities for partially fulfilling their mandate.

These include the Ministry of Justice and Constitutional Affairs, the National Communication Authority, the Ministry of Trade and Industry, the Civil Aviation Authority, the Traffic Police, the Ministry of Petroleum, and the Directorate of Civil Registry, Nationality, Passport, and Immigration.

The Minister stated that the directive, ordering revenue-collecting agencies to remit funds into a centralized pool, aims to enhance national revenue collection. Any government institution that contravenes these directives will face punitive measures.

The directive, effective from February 24th, urges relevant government institutions to ensure strict adherence.

The circular mandates that all government revenue collected by the agencies must be remitted into the Ministry of Finance and Planning’s block account without any deductions.

The Cabinet Affairs Minister also directed that upon remittance, the Minister of Finance and Planning must channel 5% of the total revenue collected back into the agencies’ accounts for operational purposes, as per Cabinet Resolution No. 16/2020 of December 2020.

The alleged non-remittance has exacerbated South Sudan’s already precarious economic situation, hindering the government’s ability to deliver essential services and address pressing development needs.

During a meeting with President Salva Kiir last week, Vice President for the Economic Cluster, Dr. Benjamin Bol Mel, discussed economic reforms aimed at reviving the struggling economy.

Agreed resolutions include investment in non-oil sector revenue generation, enforcement of procurement regulations to reduce waste and ensure value for money, and responsible government spending.

The introduction of biometric payment systems for civil servants, to ensure salary payment transparency, and the integration of banking systems, to improve financial operations, were also discussed.

However, the public remains skeptical about the implementation of these strategies and past promises. Citizens are particularly concerned about ensuring accountability for previous financial crimes and addressing the role of corruption in missing funds.

 

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