South Sudan’s business community is facing growing pressure from multiple layers of taxation and charges, with the Secretary General of the South Sudan National Chamber of Commerce, Industry and Agriculture Hon. Kur Nyok Deng warning that the burden is preventing local entrepreneurs from expanding their businesses and contributing fully to the national economy.
Speaking during the graduation of more than 1,200 entrepreneurs in Juba last week, the Chamber Secretary General Kur Nyok said the country’s taxation system places excessive financial pressure on small and emerging businesses, particularly those still struggling to establish themselves.
He called for a reduction in domestic taxes imposed on local traders, arguing that excessive taxation could undermine entrepreneurship, household incomes and broader economic development.
“You cannot do business with the current taxation that is going on. We have the municipality, the National Revenue Authority, the county and the state, all taking taxes from local traders. How will they prosper with their businesses and contribute to economic development?” Deng said.
The Chamber official said entrepreneurs can face taxation and charges from different levels of government, creating a cumulative burden on businesses that are already operating with limited capital.
He questioned how newly established businesses can survive when they are subjected to the same or similarly heavy tax pressures as more established enterprises.
“There is a difference between a new business and an old business. Someone who is just starting a business today and you are taxing him/her higher, how do you expect that person to grow?” he asked.
According to the Chamber leadership, the impact extends beyond businesses themselves, as entrepreneurs must use their limited income to meet household responsibilities, including food, education and other essential needs.
The official gave the example of a trader earning only 50,000 SSP, questioning how such a business could survive if taxes and other charges consume a significant portion of that income.
However, the concerns were echoed by representatives of the graduating entrepreneurs, who called on the government to take measures to reduce the cost of doing business and create a more favourable environment for small enterprises.
The graduates argued that lower taxation would allow businesses to retain more capital, reinvest in their operations and potentially create additional employment opportunities.
The calls come as entrepreneurship is increasingly viewed as an important source of livelihoods in South Sudan, where formal employment opportunities remain limited.
As road charges add to cost of doing business the taxation concerns extend beyond official taxes.
Traders transporting goods across the country also face multiple checkpoints and roadblocks where they may be required to make payments before reaching their destinations.
These costs can accumulate along supply routes, increasing the overall cost of transporting goods.
Traders often pass those additional costs on to consumers, contributing to higher prices in markets.
In states outside Juba, where goods are frequently transported over long distances, the cumulative cost of taxation, transportation and checkpoint payments can be particularly significant.
Furthermore, the Chamber’s concerns therefore extend beyond entrepreneurs.
When traders face high operating and transportation costs, they may increase the prices of their goods to recover expenses and protect their businesses.