Tax Exemptions Tightened as Cabinet Passes $1.74 Billion Budget for 2026/2027

(JUBA) – A proposed national budget of 11.3 trillion South Sudanese pounds, about 1.74 billion US dollars, has been approved by the Council of Ministers for the 2026/2027 financial year, alongside tighter rules on tax exemptions for imported goods.

The approval came on Friday after a presentation by the Minister of Finance and Planning, Daniel Ayulo Kuol, who set out projected government revenues and planned spending for the coming fiscal year.

The Council of Ministers, chaired by President Salva Kiir Mayardit, held what officials described as extensive discussions before the vote.

A statement from the Office of the President said the Cabinet unanimously endorsed the Resource Envelope and Expenditure Framework, which sets out the government’s fiscal priorities.

The framework now moves to the Transitional National Legislative Assembly for debate and approval, in line with constitutional procedures governing public finance management.

The framework is themed “Building Resilience and Economic Prosperity for Sustainable Peace.” It places emphasis on strengthening economic resilience, improving public service delivery, and advancing national development.

Once the proposal reaches lawmakers, it will face scrutiny before Parliament considers the Appropriation Bill and other related budget instruments. This process is required under the Constitution and the Public Financial Management framework.

A notable provision in the Cabinet’s resolution relates to tax compliance and exemptions. Importers of alcoholic beverages, cigarettes, motor vehicles, and other goods that do not qualify for statutory exemptions will now be required to pay all applicable taxes and duties.

The statement added that statutory tax exemptions will only apply where provided for under existing laws and international obligations. This includes exemptions for United Nations agencies, development partners, and humanitarian organisations operating in South Sudan.

The government also used the statement to restate its commitment to fiscal discipline. It said it “remains committed to prudent public financial management and to improving the welfare of citizens through the effective implementation of the national budget and the delivery of essential public services.”