South Sudan is scaring away investors and traders because of the multiple and illegal taxations along its roads.
Ronald Mutesasira, a Ugandan investor and director of World Wide Movers told SCR NEWS that traders are made to pay taxes to states where they are not going to sell the goods.He said profits are low due to multiple taxation.
Hotel owners are not an exception from the illegal tax collection in the region. The assistant manager of Logali House hotel in Juba Paul Taban complained about double taxing at the border and in the hotel, suggesting the removal of state service tax and VAT to be lowered.
The government resolved to exempt from taxes all food commodities last year.
George Modi, a food supplier to the SPLA, said he has never heard of tax exemption on food adding that he has always paid heavy taxes for the food he imports.
Addressing the press last week, an official in the South Sudan ministry of investment, Akueil Deng Akuei said the authorities are aware of the malpractice.
GoSS vice president Riak Machar Teny told participants at the launch of the private sector development programme this week that his government has so far failed to find a solution to illegal taxations and collection of non-oil revenue.