National, News

Tax burden crushes local businesses

By Yiep Joseph

 

Young entrepreneurs in Juba are attributing the collapse of numerous businesses to excessive and unnecessary fees levied by the Juba City Council and traffic police.

Their grievances were voiced during launch of Orange Corners Innovation Fund (OCIF) South Sudan Program on Wednesday.

Entrepreneurs cited a litany of charges imposed by the City Council, including ground rent, security fees, collection fees, general service fees, rental income fees, and various other levies from different authorities, such as the Fire Brigade and the Mayor’s office.

They also pointed to fees from the national and state Revenue Authority.

The entrepreneurs emphasized that the cumulative burden of taxes and fees from the Juba City Council and traffic police is forcing businesses to close.

They argued that these charges create an unsustainable environment for young entrepreneurs, hindering economic growth and innovation.

Rabi Emmanuel, a young entrepreneur and the founder of Arrangers Limited Company stated that due to a series of taxes from the City Council and the traffic police many youths fear venturing into businesses as they witness others struggling with losses.

“There are daily problems in the business, City Council at this side, Traffic at this side, it is hard, anything to do with this Juba, City Council and the traffic surface and their charges are high and abnormal,” Emmanuel said.

“We are managing regardless of such charges we need the government to interevent and help because our businesses are closing and young entrepreneurs are being discouraged,” he said

He called on the national government to regulate the taxes to rescue the local businesses from collapsing.

Chol Daniel, a young entrepreneur dealing in local Mobile money expressed that taxes have caused some to close down in the town.

He said that the Juba City Council collect taxes in different categories and in huge among in the shortest period.

“The Juba City Council can come today with the huge amount required for waste, yet mobile money centres have not big waste to be charged like hotels, because of that many have closed down and they became jobless” he added.

He added the small mobile money centres in the town have employed a number of young and have improved their lives and that of their families.

“We do not search for government jobs; we open our own mobile money centres to pay our schools and other bills,” he said

“The City Council sometimes issue a receipt containing 300,000 per month an amount that can not be raised and when to tell them to wait they just close down your business” he added

Racheal Abuma a young business lady dealing in catering expressed that the City Council can not depreciate businesses that need to be brought up and that to be taxed.

“The Juba City Council failed to know that our local businesses as young entrepreneurs need to be brought up, they tax us like international traders,” she said

She appealed to the government to help and rescue local businesses that have been threatened by high taxes.

“She confessed that one of her colleagues closed her business after she was told to pay a huge amount the authorities claimed to have accumulated, she was unable and just had to close the business end being disturbing” he said

Meanwhile, James Alith who deals in local bricks expressed that the traffic police taxed every truck carrying bricks at any amount many times a day.

“When we tax about taxes there are many ways, see the traffic charge any of truck I hire to carry bricks to my clients, many times, it is threatening my business,” he said

he urged the traffic officials to shun unnecessary charges that are not within the law citing the obstructed progress of local business.

Alith appealed to young entrepreneurs to continue with their commitment and embrace teamwork in order to achieve their goals.

Bouwe Jan Smeding, Deputy Head of Mission/Head of Development Cooperation at the Embassy of the Kingdom of Netherlands in Juba expressed that the entrepreneurs face a series of challenges.

“If we hear all the obstacles that the entrepreneurs face when it comes to taxation you can mention the list,” he said.

 

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