Finance Act implementation has deviated from lawmakers’ expectations- Committee chair
According to Hon. Mayen Deng, the Financial Act (2024-2025) was designed to help salvage the tough economic situation that the public was enduring by ensuring the realization of the projected revenues
By Ajah Jennifer
Addressing a press conference yesterday, Hon. Mayen Deng, the Chairperson of the Standing Specialized Committee on Trade and Industry raised concerns over the conflicting approach in the implementation of the Finance Act 2024-25, away from the expectations of the South Sudan legislators.
According to the Committee Chair, the Financial Act (2024-2025) was designed to help salvage the tough economic situation that the South Sudanese public was enduring by ensuring the realization of the projected revenues, especially after the flow of oil was disrupted by the war in Sudan, but its implementation has deviated from the expectations.
Hon. Mayen said there had been delays in the budget being brought to the floor of the house, and Finance Bill also took time to be passed as there were some key pending issues to be addressed, specifically implementation.
The public had endured a tough period due to the slump in oil revenues and therefore the Finance Act was to rescue the situation.
However, the lawmaker says, these plans have been disrupted by confusion and resistance by the business community and consumers, which has resulted into a number of consignment being stagnant at the Port of Mombasa and at Nimuli. Meanwhile, he adds, fuel marketers and traders have retracted their commitment of resources and investment in the refined fuel market in the country.
On the other hand, the situation has created unnecessary speculation in the market, resulting in traders raising prices in anticipation of the worst, Hon. Mayen explained.
The Trade and Industry Committee chair stated that the economy was experiencing deep challenges and there was urgent need to instigate measures to salvage it. However, he says, the serious differences between the theoretical and practical implementation of the Financial Act has led to lack of ownership of the trade functions by the National Ministry of Trade and Industry.
Hon. Mayen stated that there were also several complaints by businessmen on taxes imposed on imported food commodities, which were zero-rated by Parliament. And yet, there are an array of continuous illegal charges, not stipulated in the Finance Act. This, in addition to the duplicated charges by different institutions that the committee identified to be existing, and which the Act was to address.
Mayen emphasized on the need for the Ministry of Trade and Industry to estimate the overall cost of essential products and their projected retail prices. These, he advised, should be published weekly in the newspapers and the media to create awareness in the market.
“We should know what is the cost of bringing, buying and importing; and the profit margins. For instance, on a kilo of sugar. So, when a retailer says this, then we should be able to understand the whole context of the charges, so that we have the confidence to tell them, this item is expensive. Meaning we should have done our calculations based on the tax that is imposed as per our overall information on the cost of transportation of some of these products,” he explained.
The committee intends to summon the leadership of Ministries of Trade, Finance, Petroleum, South Sudan National Bureau of Standards, South Sudan Revenue Authority, Chamber of Commerce and Crawford Capital to explain why the implementation of the financial act has deviated from the expectation of the lawmakers, Mayen said.
