MPs oppose tax hikes on water, agricultural equipment

By Awan Achiek

Members of the National Legislative Assembly have expressed outrage on the proposed tax hikes on water, agricultural machinery, non- alcoholic drinks and beverages, arguing that the increment will increase the cost of doing business.

The Ministry of Finance and Planning increased taxes on water by 15%, agricultural machineries by 10% and 25% on non-alcoholic drinks and beverages, and 35% on spirits and vinegar in the recently approved 2024/25 fiscal year budget.

It also increased investment rental income by 30%, business profit tax by 30%, advance business profit on imports of food items by 4% and advance business profit on imports of non-food items by 4%.

The move is intended to boost non-oil revenue collection in order to fill the budget deficit estimated at SSP 2.6 trillion.

Peter Lomude Francis, MP representing Yei River County in TNLA on the South Sudan Opposition Alliance, said the proposed punitive taxes are likely to impoverish the majority of citizens.

“Now if you see the Bureau of Standards, there are also a lot of taxes that are imposed there. And the more you impose taxes on the businesses, they transfer these taxes to the common man,” said Francis during the third reading of the budget on Monday in Juba.

Gai Mayen Luk, MP representing Yirol East County of Lakes State on the Sudan People’s Liberation Movement-In Opposition, said the citizens are already suffering amid the economic crisis, adding that their suffering will be exacerbated with the proposed taxes in the budget.

He said that new taxes will definitely make prices of essential items shoot up, thus making it difficult for poor to afford.

 “This is going to make it very difficult for our citizens to pay the price as consumers. Business people will charge high prices on the taxed goods,” said Mayen.

Edmund Yakani, Executive Director of Community for Empowerment Progress Organization (CEPO), said that taxing essential commodities will increase the cost of delivering humanitarian services to millions of vulnerable people in the country.

“I am appealing to our lawmakers to remember that much of the work, that supplements the gap of the government in terms of social services to our communities is done by NGOs,” said Yakani.

Dr. Marial Dongrin Ater, Minister of Finance and Planning said the taxes are not only the lowest in the region but in the world.