Sudanese Government Raises Tax Despite Economic Downturn

Sudanese Government Raises Tax Despite Economic Downturn
  • The Military-led government of Sudan to the despair of the people continues to raise tax rates.

Following the October 25, 2021 coup which led to the installation of a military rule, the Sudanese government raises taxes despite the economic downturn in  Sudan. This raise has inflicted serious consequences, especially on individuals and businesses.

According to a new report released in mid-October 2022, the Sudan Transparency and Policy Tracker (STPT) revealed that the military government has decided to increase the prices and taxes on everything, which is beginning to impact the economy negatively.

The report further stated that this could lead to a business sector recession and reduced purchasing power and might end up collapsing the country’s economy by the end of 2022.

Sudanese Government Raises Tax: More the Report

In summary of the nation’s predicament, the report indicated that the situation of things today can be linked to corruption, lack of judicial independence, weak rule of law, and lack of public-sector accountability.

Reacting to the issue, Suliman Baldo STPT founder and director lamented that while the military-led government is increasing its tax collection, it is not spending enough on essential services, such as the supply of clean drinking water to households and power to residential, industrial, and commercial areas.

Also speaking on the issue, Eddie Rowe, WFP Country Director in Sudan recently mentioned in his statement to commemorate World Food Day that the prices of food have become high that regular people can barely afford to eat.

More submissions from Eddie Rowe

Previously, the civilian government had initiated a series of economic reforms to correct the national economy and strengthen governance with the financial support of the World Bank to palliate the negative impact of these reforms.

However, the October 25 coup ended up compromising the progress made by the government, as the international donors and the international financial institutions halted funding of these reforms and stopped the debt relief.

This has caused a major setback to the country’s economy and could worsen the living conditions next year.

According to the report, the depreciating purchasing power of the pound is exposing an increasing number of public sector workers to all forms of petty corruption.

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