New Financial Law 2024/2025 fiscal budget enters into force

The new legislation, signed into law by President Salva Kiir in November, aims to boost government revenues and fund vital public services 

By Chuol Chanyong

The South Sudan Revenue Authority has introduced a set of changes to the country’s tax system, as the Financial and Appropriations law takes effect.  

The new legislation, signed into law by President Salva Kiir in November, aims to boost government revenues and fund vital public services and its official effect was declared on Monday, by Simon Akue Deng, the Commissioner General of South Sudan Revenue Authority (SSRA).

Akue said the law, which has been under preparation for several months, aims to simplify the country’s tax system and harmonize it with regional standards. “The law provides updated tax rates based on the current exchange rate set by the Central Bank, while the overall tax burden in South Sudan remains among the lowest in the region,” he stated.
“The updated rates will reflect the economic reality and contribute to increasing government revenues.”

He further said that the new law was essential for the economic development of the country and would help provide basic services to citizens.

“By aligning the tax system with regional standards, South Sudan is positioning itself as a more attractive destination for investment.”

“I know that the response to this new law will have a slight impact on prices. We know that, because every law has an impact, but I want you to be very careful about what you raise.”

On his part, Lejukole Noel Marley, a representative of the South Sudan Revenue Authority Legal Services said that the law aligns the customs duty conversion rate with the official exchange rate of the Bank of South Sudan, to enhance the collection of customs revenues. 

“As for the business profits tax, the standard business profits tax rate was set at 4%, with a 30% rate imposed on rental income and mineral water kept at 5%.  Cosmetics are reduced from 50% to 25%.  A 25% selective tax was imposed on motorcycles,” he explained.

Regarding changes in customs duties on meat products, he said it has been increased from 5% to 10%, and fish and aquatic products increased from 5% to 10%. 

As for products of animal origin, it increased from 5% to 10%.  Animal feed was reduced from 20% to 10%.  While live trees, plants, roots, flowers, saw a new fee of 10% imposed.  As for drinks, spirits and alcohol, they increased from 30% to 35%.

Fur, leather, faux fur, and leather products increased from 10% to 20%.  Cork products increased from 10% to 30%, paint materials jumped from 10% to 30%.

For silk, it was increased from 10% to 15%, and wool, animal hair, horse hair, and woven fabric increased from 10% to 15%. 

A new fee of 40% was imposed on precious stones.  Balloons, headdresses, umbrellas, shoes, worn clothes, knitted fabrics, woven fabrics, and carpets all were increased from 10% to 15%.

 As for musical instruments, they increased from 10% to 25%.  Exports of aircraft and helicopters also increased from 10% to 20%, then ships, boats and floating facilities increased from 10% to 15%.

“As for the business profits tax, the standard business profits tax rate was set at 4%, with a 30% rate imposed on rental income and mineral water kept at 5%.  Cosmetics are reduced from 50% to 25%.  A 25% selective tax was imposed on motorcycles,” Lejukole Noel Marley, a representative of the South Sudan Revenue Authority Legal Services.