States Consent On Centralized Tax Collections

This article was last updated on May 25, 2022

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“The Minister of Finance and Economic Planning Kosti Manibe and the Ministers of the ten States of South Sudan reached an agreement,” said the statement released from the National Ministry of Finance of the National government.

The agreement will provide additional compensation of revenues lost by the States since the take over of the collections of the revenues by the national government last year.

“Under the agreement, the proposed surcharge on Personal Income Tax will be removed from pending legislation so that the states’ employees will not be subject to both National and State Income Tax,” added the statement.

“This retention will increase funds available to the States to assist in meeting their budgetary needs,” it said.

The National Directorate of Taxation will continue to collect Personal Income Tax from private employers, including NGOs, as the exclusive authority for those collections, it said.

The States and the national government also agreed that, the National Directorate of Taxation and the State Taxation Authorities will support the centralized collection policy and will coordinate and cooperate in improving tax collection throughout the ten states. 

“This agreement allows us to continue to harmonize our federal and state tax systems and ensure that we do not return to the harmful system of roadblocks and multiple layers of taxation, thus helping our economy and country grow toward self-sustaining levels,” Kosti said.

The agreement came after the ten States late last year raised concerns with the Central Equatoria State government threatening to break away from the centralized revenue collections, accusing the national government for failing to live up to the mandate of the agreement reached with the states.

It was in May last year when the National government and the states agreed to centralize the revenue collections where the National Ministry of Finance became the overall player in the revenue collections in all the states.

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