The need for effective revenue collection and service delivery is especially critical in South Sudan, a nation grappling with ongoing economic challenges and instability. Recently, the South Sudan Revenue Authority (SSRA), with the support of the African Development Bank and the United Nations Development Programme (UNDP), hosted a Tax Policy Dialogue in Juba focused on “Optimizing Revenue Collection to Enhance Service Delivery.” This dialogue served as a vital platform for addressing tax administration issues impacting various levels of government both vertically and horizontally.

The event gathered a diverse group of stakeholders, including representatives from the National Ministry of Finance and Planning, SSRA, State and Administrative Area Ministries, and the South Sudan Chamber of Commerce. The participation of UNDP and the African Development Bank further emphasized the collaborative approach necessary to address these pressing challenges.

Background Context

South Sudan has faced numerous setbacks since experiencing initial economic stability, primarily due to conflicts and crises such as the COVID-19 pandemic, the war in Ukraine, and persistent economic instability. Recent disruptions, including the breakdown of an oil pipeline, have drastically reduced oil revenue—previously the government's main source—by about 30%. This decline, coupled with macroeconomic instability and the impacts of the conflict in Sudan, has strained government resources and worsened food insecurity and poverty levels.

Against this backdrop, the Tax Policy Dialogue sought to review past discussions, identify challenges, and propose actionable solutions aimed at enhancing non-oil revenue to improve service delivery. The primary goal was to foster a unified understanding among stakeholders regarding critical tax policy issues.

Innovative Approaches to Revenue Generation

The dialogue emphasized the need for innovative approaches to leverage non-oil revenue streams to bridge financing gaps crucial for service delivery. This initiative is supported by the Institutional Support Project for Strengthening Economic Governance in South Sudan (STEG-SS), funded by the African Development Bank and UNDP.

The event also highlighted UNDP’s ongoing public financial management initiatives, including the Governors Forum, which tackles high-level financial governance issues. A key highlight included the launch of UNDP’s report, “South Sudan: Assessing and Strengthening Local Governance for Inclusive Development,” providing valuable insights into economic governance at the state and administrative level.

In preparation for the dialogue, UNDP collaborated with Kenmaris Consulting, whose draft report, “A Search for Optimal Non-Oil Revenue,” laid the groundwork for discussions, incorporating feedback from various states and administrative areas.
Key Resolutions and Discussions

The Tax Policy Dialogue effectively addressed numerous critical issues, resulting in actionable resolutions:

1. Overlapping Taxing Powers: Participants discussed and confirmed resolutions from the 6th and 7th Governors’ Forums regarding overlapping taxing powers, proposing amendments to clarify Personal Income Tax (PIT) responsibilities.
2. Double and Multiple Taxation: An agreement was reached to establish a one-stop shop for revenue collection, aimed at mitigating issues of double taxation. The SSRA will collaborate with the National Ministry of Finance to develop this initiative.
3. Coordination Between Authorities: Effective communication and coordination between the SSRA and State Revenue Authorities were emphasized, ensuring the proper routing of communications through governors or chief administrators.
4. SSRA Office Closures: The SSRA's continued operations were confirmed, with a commitment to resolving any misunderstandings administratively.
5. Taxpayer Protection: The dialogue underscored the necessity of maintaining positive relationships with taxpayers, ensuring disputes do not negatively impact them.
6. Financial Forms: Clarifications regarding the responsibility for printing financial forms were established, with a focus on tracking and proper supply distribution.
7. Municipal Revenue Collection: A taxpayer-friendly approach to municipal revenue collection was encouraged, promoting education to foster voluntary compliance.

Conclusion

The Tax Policy Dialogue successfully achieved its objectives through open discussions that allowed stakeholders to voice concerns and clarify issues regarding tax policies, particularly PIT. By fostering cooperation between the SSRA and state authorities, the dialogue’s resolutions aim to enhance revenue collection effectiveness and improve service delivery. UNDP remains committed to facilitating such dialogues, reinforcing the social contract between the people of  South Sudan and their government while promoting sustainable economic governance to enhance the nation's resilience and recovery.