Southern Sudan taxation practices harming trade

The current revenue collection practices at the international and inter-state borders in Southern Sudan are harming trade between the attractive market and the East Africa, a new the study titled: "Cross-border trade: Fuelling conflict or Building Peace?" reveals.

Traders doing business between Southern Sudan and Uganda, say that exploitative tax collection administration in the country is resulting into unwarranted higher prices of goods, hunger, closure of businesses, and bitterness that could lead to violence.

This is according to the report by Conciliation Resources a Non Government Organization which provides data for local organisations pursuing peace-building and conflict resolution initiatives which was unveiled for discussion in Kampala on Tuesday, June 30
"The current situation is also causing growing anger among some Sudanese traders who feel that their livelihoods are being directly threatened as a result of what they perceive to be gross and uncontrolled corruption at the border," the report which sourced the knowledge of both Uganda and Sudanese traders along the Juba-Nimule road reads in part.

The new report explores how trade policy and practice along the Uganda-Sudan border is contributing to socio-economic recovery in the region, and identifying practices and loopholes in the trade.

The study says revenue or taxes in Southern Sudan is collected by a large number of groups and agents on behalf of various authorities on the ground, at both border points and interstate boundaries.

"Some of these appear to be quasi officials in nature and it is not always clear under whose authority they are operating or how charges and levies are actually determined."
Cross-border trade between South Sudan and the East African partner states is booming on the back of strong demand from a stable South Sudan.

The rapid growth of the trade also follows the signing of Sudan's Comprehensive Peace Agreement (CPA) in 2005. Sudan is currently the leading regional destination for Uganda's exports.

Uganda, Kenya and Rwanda are the major exporters of agricultural related products, construction materials and fast moving consumer goods to the new and buoyant market.
Conciliation Resources (CR) says the ill revenue collection system is severely damaging the reputation of the Southern Sudan government and it wants authorities in the nation to reform the system.

In pursuit of higher revenue, the Southern Sudan government recently proposed a number of options including, increasing custom taxes, establishing a bank at the border to collect taxes, unification of collection mechanisms across the South, and creation of a single revenue collection committee.

Source: http://www.monitor.co.ug/artman/publish/business/Southern_Sudan_taxation_practices_harming_trade_87415.shtml