Parliamentary Warning to Finance Sector
South Sudan’s Standing Specialized Committee on Finance and Economic Planning has ordered commercial banks to stop deducting sales tax and excise duties from customer accounts, calling the practice illegal under the current Financial Act.
Customers Cry Foul Over Deductions
Lawmakers summoned bank chief executives in Juba after citizens complained that lenders were shifting an 18 percent sales tax onto clients instead of absorbing it themselves, a move that many account holders described as unfair and financially draining.
Banks Cite Communication Gaps
Bank Association chair Bruno Sirisio conceded that several institutions breached earlier directives, attributing the error to unclear guidance from the National Revenue Authority on how the levy should be calculated.
He said lenders now share a ‘clear understanding’ and will adopt a formula that ’causes less harm to the public’.
Committee Demands Transparency
The committee asked every bank to submit a written report detailing its tax-handling procedures, signalling closer scrutiny in partnership with the Central Bank and revenue officials.
Path Toward Compliance and Trust
Chairperson Michael Ayuen Johnson stressed that Parliament is not punishing the sector but intends to foster compliance that protects consumers and strengthens confidence in the financial system.