South Sudan is losing substantial revenue due to outdated and low tax rates, particularly on maize flour imports, a senior official has warned during a public hearing on the 2025/2026 national budget on February 12, 2026.
Aggrey Tisa Sabuni, technical advisor for revenue matters at the South Sudan Revenue Authority, told lawmakers in Juba that the continued application of a 5% import duty on maize flour — unchanged since 2002 — is undermining domestic revenue mobilisation and weakening the country’s standing within the East African Community (EAC).
Sabuni said taxation is central to sustaining the social contract, noting that the Finance Bill is the primary instrument for revenue generation and policy implementation.
Under the EAC’s Common External Tariff, raw materials attract zero duty, semi-finished goods 10%, finished products 25%, and sensitive items 35%. However, South Sudan maintains a 5% duty on maize flour, compared to 25% in most EAC states, 35% in Ethiopia and 40% in Sudan.
He questioned whether maintaining the 5% rate “year in and year out” can support national development, adding that the rate was introduced in 2002 in Rumbek and has not been revised since independence in 2011.
Sabuni compared South Sudan’s fiscal performance with regional peers, noting that the country’s 2024/2025 budget stood at about $1 billion, while Uganda collected roughly $20 billion in tax revenue, Kenya $30 billion, Tanzania $18.8 billion, Rwanda $3.7 billion and Burundi $1.5 billion. For 2025/2026, South Sudan’s budget is projected at around $1.5 billion.
He also highlighted critically low foreign exchange reserves of $74 million — equivalent to about half a month’s cover — compared to significantly higher reserves across neighbouring countries.
Using maize flour as an example, Sabuni argued that low import duties discourage domestic agriculture at a time when the government has pledged to prioritise the sector.
Finance ministry undersecretary Benjamin Ayali Koyongwa echoed calls for reform, saying tax rates must be revisited and aligned with EAC
standards while safeguarding citizens’ purchasing power.
However, business representatives raised concerns over implementation. Asmerom N. Tuquabo of the Eritrean Business Community Chambers alleged that importers face additional unauthorised charges under the 2024/2025 Financial Act and, in some cases, customs duties significantly above the stipulated 5%.