Finance
South Sudan Business Taxation Crisis: How Multiple Levies and Barriers Are Shutting Down Trade
South Sudan Business Taxation Crisis: Multiple Taxes & Barriers Threaten Economy
By Peter James | South Sudan Online | Juba, South Sudan
Published: May 1, 2025
Introduction
South Sudan’s private-sector lifeline is under severe strain. Reports to the Ministry of Trade and Industry reveal that many enterprises are closing because of multiple taxation, non-tariff barriers, roadblocks, harassment and unauthorized levies. Unless sweeping reforms are enacted, the nation risks an economic shut-down.
Key Business Threats
At the First National Trade Forum 2025 in Juba, Trade Minister Atong Kuol Manyang Juuk identified four principal threats now jeopardising commerce:
- Multiple Taxation – overlapping fees demanded by national, state and local authorities.
- Non-Tariff Barriers – unregulated checkpoints, permits and paperwork that delay goods in transit.
- Roadblocks & Harassment – informal levies collected by security personnel along major highways.
- Unauthorized Levies – charges imposed without any lawful mandate.
“Businesses are closing because compliance costs are unbearable,” the minister warned. “If we fail to act, the ripple effect will cripple households, widen unemployment and erode public confidence.”
Chamber of Commerce Issues Red Alert
The National Chamber of Commerce echoes the ministry’s concerns, calling the tax regime “flawed and burdensome.” Deputy Chairperson John Lual condemned a “silent trade war” in which uncoordinated taxes from multiple institutions force traders—both domestic and foreign—to scale back or quit entirely.
Impact on Prices and Investment
Disorganised taxation directly fuels inflation. With every level of administration seeking its own levy, transaction costs can double or triple, eroding profit margins while pushing retail prices ever higher. Cash-strapped consumers, already reeling from currency volatility, shoulder the burden.
Meanwhile, investors are retreating. The uncertainty of shifting fees, fines and unofficial tolls discourages long-term capital, further dimming prospects for job creation.
Empowering SMEs, Women and Youth
Minister Atong emphasised that any reform must prioritise small and medium-sized enterprises (SMEs), especially those led by women and youth—groups that account for a significant share of South Sudan’s informal workforce.
Proposed measures include:
- Consolidating licensing and tax registration under one authority.
- Digitising all official payments to reduce face-to-face harassment.
- Establishing a one-stop investor service centre in Juba to streamline approvals.
Lessons from the Region
Neighbouring countries have shown that simplifying taxes and dismantling non-tariff barriers can reignite growth, boost government revenue through improved compliance and restore investor confidence. South Sudan can replicate those gains—if political will matches policy intent.
Conclusion: Reform for Survival
South Sudan stands at an economic crossroads. Eliminating multiple taxation, cutting non-tariff barriers and banning unauthorized levies are no longer optional. They are prerequisites for stabilising prices, protecting livelihoods and attracting the investment essential for long-term prosperity.
The choice is stark: decisive reform—or an avoidable slide into deeper economic distress.
South Sudan Online will continue monitoring all developments on trade, taxation and private-sector reform.
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