The tax centralization policy introduced by the national Government as part of efforts to generate income after oil shutdown last year has left the finances of Central Equatoria State in the red.
SPLM MP Jacob Kwiyansuk at the state assembly lamented that since the tax centralization policy was put in place no cash was transferred to the state account as it was agreed upon by the state and national ministries of finance.He said the national ministry of finance dishonoured the agreement signed with the state ministries for finance and did not share any cash during the past three months.
The MP added that the process of centralization should be presented to each state assembly for approval before it was imposed by the national ministry of finance.
Mr Kwiyansuk said the new tax policy is anti-constitutional.
He added that the Central Equatoria Government is facing great difficulties to pay its huge workforce.
The national ministry of finance signed agreement with state ministries of finance to centralize collections in the country after the shutdown of oil production last year.
The agreement said money collected at tax points would be shared between the central and state governments.
Early in the week, Central Equatoria minster for finance Jacob Aligo Loladu said he did not present the budget for 2012 because he did not have money.
Central and Eastern Equatoria are the two states most affected by the centralization of tax collection in South Sudan.