25 January 2013

South Sudan: States and National Ministries of Finance Agree On Centralized Tax Collections

press release

Juba — Following three days of meetings in Juba, Minister of Finance and Economic Planning, Hon. Kosti Manibe Ngai, and the Ministers of Finance from the ten States of South Sudan reached an agreement that will provide additional compensation to the States, under the centralized collection policy.

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. This retention will increase funds available to the States to assist in meeting their budgetary needs.

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

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