Shops Closed In Bor Over Tax Disagreement Between Traders And Government

Traders in Bor have closed their shops after disagreeing with government in regards to business profit tax.

By Jo Ngong Akau     

BOR, 14 September 2017 [Gurtong]-
Some of the traders who spoke to Gurtong say that the government is now demanding for an increased amount than the usual they used to pay adding that the shops will remain closed until the issue is solved.

Adil Paul Deng the Director for taxation in South Sudan Ministry of Finance and Economic Planning has accused the traders of not paying their taxes in time as required by law.

"There is a way they are demanded to pay their profit tax. They say they could be asked to pay 3, 000 SSP and some pay 1, 000 SSP, imagine. Profit tax is not collected like that; it is the percentage on the income of the business. If you don’t keep your business records then there is a way the law also says that you should be assessed”, Adil Paul said.

According to Adil Paul, the taxation act of 2009 states that business profit is charged on taxable income at a rate of ten per cent on small businesses, twenty per cent on medium businesses and twenty five per cent on large businesses.

However, some traders say that they are being demanded to pay 50,000 SSP as tax every month.

“The reason as to why shops have been closed up to now is that the government is asking that each person must pay 50, 000 as tax”, one of the traders explained.

My shop will collapse If I pay this amount because the money I always get per day is not even equivalent to the money that I am supposed to pay to government.” Said another trader.

The traders added that in recent months they used to pay about 3,000-4000 SSP each month depending on business income.


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