(JUBA, CENTRAL EQUATORIA) – Traders in Juba, the capital of South Sudan, have closed at least 10 shops in the past month after rising taxes and operating costs made it difficult for businesses to continue operating, according to the Equatoria State Chamber of Commerce.
Business owners blamed the closures on increased charges imposed by the Juba City Council, saying the growing number of taxes and fees was placing heavy pressure on traders already struggling with high costs.
The charges include annual service fees, town rates, rental value fees, ground rent, garbage collection fees, administrative charges, gliding fees, general maintenance fees and environmental cleanliness levies.
The latest increases came after the Juba City Council revised garbage collection charges. Monthly fees for large shops rose from SSP60,000 to SSP120,000, equivalent to about US$19 to US$38 at the current exchange rate. Medium sized shop fees increased from SSP45,000 to SSP90,000, or roughly US$14 to US$29, while charges for small shops rose from SSP32,000 to SSP64,000, equivalent to about US$10 to US$20.
Hotels also faced sharp increases under the revised structure. Monthly garbage collection charges for first class hotels rose from SSP675,000 to SSP5,000,000, equivalent to about US$214 to US$1,587. Charges for second class hotels increased from SSP450,000 to SSP4,000,000, or around US$143 to US$1,270, while third class hotel fees rose from SSP225,000 to SSP3,000,000, equivalent to roughly US$71 to US$952.
Addressing journalists during a press conference in Juba on Tuesday, Equatoria State Chamber of Commerce Chairperson Robert Pitia Francis said at least 10 shops had closed within one month because of what he described as heavy taxation.
“Every time we go to the market, you find that, per day or month, there are 10 shops closed. That’s why others start thinking of what other business they can do,” Francis said.
Francis said some traders were abandoning Juba altogether and relocating to other states in search of a more favourable business environment.
“Some people will shift from here and go to other states. And some people from other states will come and see what the best thing that I can do here in Juba is,” he said.
He argued that authorities should consider the capital available to businesses, operating expenses and the number of workers employed before introducing new taxes.
“If you introduce taxes, you are supposed to see the capital of businesses, operation costs of these businesses, and what they are doing. If they are employing our own people and what service are they offering to their own people,” he said.
Francis called for tax reform and harmonisation measures to reduce pressure on businesses and prevent further closures.
“I am calling for reform. And for this reform, we need tax harmonisation. We want to make sure this tax harmonisation comes in. Because now, things are becoming hard. Our own people are suffering,” he said.
He warned that excessive taxation could eventually reduce government revenues if more businesses shut down.
“Businesses are struggling. Some are closing. And at the end of the day, the few that you are charging or the few that you are taxing, if it goes beyond the limit, they close. I think you will not get anyone to tax,” he said.
Francis urged the government and city authorities to review the current tax regime and adopt measures that balance public revenue collection with business survival.
“So, I am advising our government to make sure they address this matter. They need to find the best way to address this problem. They need to sit down to address this. Let them put aside their self interest, and put forward the interest of South Sudanese people,” he said.
He warned that continued pressure on traders could lead to more job losses, weaker economic activity and further strain on Juba’s already difficult business environment.
“I cannot give you the specific number, but per month, people are closing shops not because of anything but because of the heavy taxes. And these taxes are really unbearable. And it is real; our people are feeling it,” he added.