South Sudan exempts UN, aid groups and diplomatic missions from taxes after pressure

JUBA – South Sudan’s government on Friday granted tax exemptions to United Nations agencies, humanitarian organizations and diplomatic missions operating in the country, following concerns raised by Western nations and delays in aid deliveries.

The move comes after the United States, the European Union and the United Kingdom expressed disapproval of a government decision last month to impose taxes on some commodities purchased by the U.N., leading to delays at the Nimule border and disruptions in aid for about 60,000 people.

“All the United Nations Specialized Agencies, Humanitarian Organizations and Diplomatic Missions Operating in South Sudan shall be exempted from payment of taxes and customs duties on goods imported for humanitarian purposes or for carrying out their activities in the country,” Awou Daniel Chuang, Minister of Finance and Planning, said in a ministerial order dated May 3, 2024.

The exemption does not apply to subcontractors working with the U.N., which Chuang described as “profit-making entities.”

“All UNMISS contracted companies to render services internally shall not be part of this exemption of taxes, charges and fees levy on goods,” Chuang added.

“These companies are profiting making entities, and such are subjected to applicable tax related to services provided as per the provisions of SOFA and particularly under article iv, section 14 of SOFA,” he concluded.

Previously, a joint statement by the United States, Canada, the European Union, France, Germany, Japan, the Netherlands, Norway, Sweden, Switzerland, and the United Kingdom accused South Sudan of imposing taxes on a range of permits and fees, including the E-Petroleum Accreditation Permit, customs charges, the electronic cargo tracking note, laboratory tests on food rations, and the security escort fee.

These taxes, according to the statement, contradicted international practice and South Sudanese laws.