Finance ministry stops all non-legal tax waivers

2026-02-18 - 07:27

The Ministry of Finance and Planning has ordered the cancellation of all existing non-statutory tax exemptions from customs duties, taxes, and other government charges. In Ministerial Order No. 011/2026, dated 17 February 2026, the Minister of Finance and Planning, Dr. Bak Barnaba Chol, directed the immediate withdrawal of all approved discretionary exemptions that are not provided for under existing laws. The order, which takes effect from the date of signature, follows a resolution of the Council of Ministers on 30 January 2026 as part of broader economic recovery and structural reform measures. What the order means In simple terms, a non-statutory tax exemption refers to a waiver or relief from paying taxes or customs duties that is not clearly established or authorized by law.These exemptions were previously granted through administrative decisions rather than specific legal provisions. Withdrawing them means that the affected institutions, companies, or entities will now be required to pay the relevant customs duties, taxes, fees, and charges as required by law. It does not mean new taxes have been introduced, but rather that previously granted unofficial exemptions have been cancelled. The order further directs the South Sudan Revenue Authority to stop honoring such exemptions and to enforce their revocation in accordance with the law. It also states that no new non-statutory exemption requests will be processed unless expressly provided for under existing legislation. Legal basis and exceptions The minister cited provisions of the Transitional Constitution, the Public Finance and Accountability Act, the Taxation Act, and the Customs Service Act as the legal basis for the decision. However, the order clarifies that statutory exemptions provided for under law will remain valid. These include exemptions under international agreements such as the Vienna Convention, Status of Forces Agreements (SOFA), petroleum sharing agreements, donor-funded bilateral and multilateral agreements, and other tax exemptions specifically sanctioned by the laws of South Sudan. All future requests for tax exemptions must be submitted directly to the National Minister of Finance and Planning by an equivalent constitutional office holder. The ministry said the measure is aimed at strengthening public financial management, improving revenue collection, and aligning the country’s tax system with regional and international best practices.