TNLA Advises NRA as Sole Authority for Tax Collection

By Taban Gabriel

King News-23^rd August 2024. The Committee on Finance and Economic Planning at the Transitional National Legislative Assembly (TNLA) has on Friday, during a public hearing on the submission of the Fiscal and Financial Allocation Monitoring Commission Bill 2024, recommended that “only” the National Revenue Authority (NRA) Should be allowed to “collect all taxes and non-tax” on behalf of States, Administrative areas, county and City Councils in South Sudan.

According to the recommendation, the States will get their share of the revenue through what the committee described as “Vertical equity shareable of revenues.”

In the vertical equity shareable of revenues mechanism, the states get 15% shares of “all taxes imposed by the national government and any other revenue authorized by act of parliament.”

Except “property rates; entertainment taxes and fees charge for services provided by the state government,” which, according to the suggestion, will directly be remitted to the particular state’s account.

The proposal also advised for a permanent one-term office for the Commissioner General of NRA for a period to be decided by the parliament.

Speaking during the submission of the recommendations, Member of Parliament (MP), who doubles as Deputy chairperson of the Committee on Finance and Economic Planning, Susan Thomas, argued that, once amended, the proposal will improve accountability on how non-oil revenues are used and allocated.

“You see, we are doing all these recommendations such that we can have transparency and accountability in our resource management,” Susan said

MP Susan contrasted her committee’s recommendation with that of Kenya, which she termed “Best practice.”

However, upon the announcement of the recommendation, finance officials from the states protested the notion.

“We don’t want the big and long hand of the National Revenue Authority to reach our States; let it remain with you here in Juba,” Venansio Gwang Adwok, Chairperson for Finance, Economic Planning and Investment for Upper Nile State, said.

“You have to withdraw this recommendation immediately because it doesn’t represent our views as States,” Vienna Kakule Agrey, Central Equatoria State Minister of Finance, said.

Meanwhile, Majok Angeu, the Minister of Finance for Lakes State, suggested an increment of 19% allocation to the States and Administrative Areas of the revenues without confirming his stance on the recommendation.

In a bid to “calm the flame,” the TNLA Deputy Chairperson for Finance and Economic Planning Susan urged MPs to “not overreact.”

“You know we are doing all these for the future. Even our constitution still maintains that the States should collect certain revenues. However, we all want to ensure our money is put in the right place.” She Said.

The Finance and Economic Planning Chairperson at the TNLA, Changkouth Bichok, said all submissions and views shared by the different state finance officials will be considered.

On the 15^th of August 2024, the standing Specialized Committee on Finance and Economic Planning of TNLA traveled to Kenya for a “Benchmarking Study tour” on revenue allocations to States and the Office of the Commissioner General of NRA.

According to Susan, some of the findings from the trip were cited in the recommendation.