South Sudan tax chief warns against cargo mislabeling, fake receipts

JUBA – South Sudan’s tax authority has issued a strong warning against smuggling sensitive goods through cargo mislabeling and the use of fake bank receipts, aiming to curb revenue leakage.

Simon Akuei Deng, Commissioner-General of the South Sudan Revenue Authority (SSRA), raised concerns about ongoing smuggling and fake bank receipts with no remittance to government accounts.

“I want to warn you, issues of smuggling! Yesterday, I wrote a letter for your information, because Uganda is complaining that most of the goods are also dumped in the region, within Uganda,” he said at an event in Juba on Saturday.

Deng said the SSRA has decided to charge customs duty on “sensitive goods” at the country of origin.

“Custom duty has to be paid before reaching Nimule, cigarettes, alcohol, some of the construction materials, cosmetics, shisha, whatever it is. They have to be paid before they leave the industries,” he said.

He explained that his office regularly impounds trucks carrying mislabeled goods. For example, tobacco and cigarette trucks have been falsely declared as carrying soda and maize flour, respectively.

“The reason being, every day, even last night [Friday], our officers are arresting trucks for fuel, and trucks that are full of tobacco, or cigarettes,” Deng said. “And it is because they are facilitated by us – you being the lead as a clearing agent. I have had documents in my office, where a cigarette truck is cleared as maize flour, a whiskey truck is cleared as soda.”

Deng, who spoke at the first presidential inauguration of the South Sudan Freight Forwarders Association (SSFFA), called smuggling a vice that must stop immediately.

He explained that “sensitive goods” are taxed heavily because they are harmful to health.

“I would rather clear goods that are beneficial to our population but the ones that are harmful, they are raised,” he said. “Even this act makes [tax] it very low but the next act will raise cigarettes, I have to tell you – all the harmful goods, sensitive goods, need to be controlled.”

Deng also revealed that his office has taken legal action against some organizations over alleged “fake bank receipts” with no corresponding deposits into SSRA accounts.

He claimed that some bank tellers, without the bank’s knowledge, collude with clearing agencies to create fraudulent payments using fake stamped receipts. These receipts are then presented to government officials who, believing them to be genuine, release the goods.

“Some of the fake receipts are stamped, and they are issued to the clearing agent and takes them to the government officials who also confirm them to be correct and goods are released,” Deng said. “But in the bank statement of the government, there is no money. We are in court with some of those [organizations].”

In his acceptance speech, SSFFA President Deng Daniel Ayuen said members would adhere to government regulations.

“We should not go contrary against the government policies we must abide by, as per the constitution of the Republic of South Sudan,” he said.

Ayuen acknowledged shortcomings within the freight forwarding sector and called for joint efforts to address revenue leakages.

“I can agree that there are shortcomings, you see the challenges. Malpractices are always there, but it is up to your institution now to cooperate with the leadership so that we close all these gaps,” he said.