SSRA Moves to Replace Sales Tax With Value Added Tax Model

(JUBA) – South Sudan’s Revenue Authority (SSRA) has proposed a major overhaul of the country’s tax system, recommending a transition from the current sell tax to a Value Added Tax (VAT) model. The initiative aims to strengthen revenue collection and bring South Sudan’s financial framework closer to regional standards.

The proposal was discussed during a recent leadership meeting at SSRA headquarters, where officials noted that the existing sell-tax has been insufficient to generate the revenue needed to support government services and development projects.

Experts from the University of Juba, led by Dr. Abraham Kuol Nyuon, presented research showing that a VAT system could significantly increase government income and create a more stable and predictable revenue stream. VAT is a consumption tax applied at each stage of the supply chain, with the final cost borne by consumers. It is widely used in neighbouring countries to broaden the tax base.

SSRA Commissioner General Simon Akuei Deng emphasised a phased approach to implementing VAT.

“A staged system will allow businesses and consumers to adapt,” Akuei said. “We will start with a simplified structure and gradually expand its scope and rates to minimise economic disruption.”

To support the transition, SSRA has directed all commissioners and assistant commissioners to reduce operational expenses by 20 percent to relieve financial pressure on the authority.

A five member committee, backed by a legal team, has been established to explore the legal and regulatory framework for VAT implementation. Legal oversight will ensure compliance with existing laws and protect taxpayers’ rights, which is critical for building public trust in the new system.

The VAT initiative is being billed as part of wider government efforts to diversify revenue sources, reduce dependence on oil, and improve fiscal management by the tax body.

South Sudan Revenue Authority Plans VAT for Higher Government Income