Enhancing Domestic Revenue Mobilization in South Sudan: NRA Initiatives
The presentation by Hon. Athian Ding Athian, NRA Commissioner General, at the 1st National Economic Conference in South Sudan focused on the National Revenue Authority's mandate, strategic plan, revenue performance, and policy options for boosting non-oil revenue. The NRA aims to achieve a Tax-to-GDP ratio of 6% by 2027 through digital transformation, motivated staff, and core values. The five-year strategic plan outlines key objectives and targets for revenue growth by implementing strategic initiatives.
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Republic of South Sudan NATIONAL REVENUE AUTHORITY Tax Base Potential and Policy Options for Domestic Revenue Mobilization in South Sudan Presented at the 1stNational Economic Conference By : Hon. Athian Ding Athian NRA Commissioner General 5 September, 2023
Outline of the Presentation NRA Mandate Five-Year Strategic plan 2022-2027 Revenue Performance Comparative Analysis Medium Term Initiatives NRA Asks
1. NRA Mandate Legal Framework for the Establishment of NRA South Sudan National Revenue Authority Act, 2016 The Customs Service Act, 2013 The Import-Export Act, 2012 Taxation Act, 2009
The Philosopy Vision To be a Modern Tax Administration in Mobilizing Non-oil Revenue to Achieve a Tax to GDP Ratio of 6% by 2027. Mission To Leverage on Digital Transformation and Highly Motivated Staff to Mobilise Non-oil Revenue for National Development.
Core Values TAP IT Transparency Teamwork Accountability Core Values Integrity Professionalism
2. Five-Year Strategic plan 2022-2027 Strategic Objectives (11)
3. Revenue Performance in FY 2021-2022, 2022-2023 Target for 2022/2023 Implementation of the strategic initiatives under NRA 5-Year Strategic Plan performance by about 30% NRA set internal working target of SSP 150.0 billion Based on the NRA Tax Revenue Forecasting Model (NRFM) to enhance Approved Resource Envelop for the FY 2022/2023 set the non-oil revenue target at SSP 117.035 billion
Revenue Growth of 138 percent (SSP billion) MONTH July August September October November December January February March April May June Total FY2021/2022 5,624,238,012.32 6,050,866,624.54 6,499,575,094.60 6,085,821,830.94 5,565,135,633.08 5,948,477,391.00 7,591,113,612.00 6,633,367,257.37 6,597,723,879.84 7,782,766,142.22 6,701,626,377.23 9,412,238,443.20 80,492,950,298.34 FY2022/2023 9,181,041,274.60 12,681,626,815.19 10,392,098,084.59 17,183,572,578.66 13,346,603,453.34 16,505,214,658.40 15,522,581,031.71 15,699,059,095.30 17,672,651,634.29 19,805,717,842.26 22,632,985,006.71 21,169,682,899.35 191,792,834,374.40 GROWTH 63% 110% 60% 182% 140% 177% 104% 138% 168% 154% 238% 125% 138%
An Outturn of 163.9% against annual target 191.8 117.035 Target Actual
Customs versus Domestic 80% 20% Domestic taxes Customs
Real Revenue no inflation FY 2020/2021 FY 2021/2022 2,351,301,228.9 5,066,881,092.2 2,836,753,008.9 5,261,623,151.8 1,992,578,449.1 5,416,312,578.8 3,279,559,143.3 5,157,476,127.9 3,220,542,565.1 4,676,584,565.6 4,496,163,102.8 4,836,160,480.5 3,321,503,860.1 6,544,063,458.6 2,585,284,085.5 5,818,743,208.2 3,882,481,659.6 5,195,058,173.1 5,421,241,366.8 5,941,042,856.7 3,822,480,650.8 5,983,594,979.7 3,486,630,621.6 8,556,580,402.9 40,696,519,742.5 68,454,121,076.0 % FY 2022/2023 8,346,401,158.7 11,368,558,328.3 8,958,705,245.3 14,851,834,553.7 11,456,311,977.1 14,253,207,822.5 13,736,797,373.2 12,868,081,225.7 14,371,639,925.3 15,740,849,570.6 19,314,971,777.5 18,088,610,938.0 163,355,969,895.9 68% 139%
Revenue by tax heads Personal Income Tax (PIT) contributed over 50% (SSP 90 billion) of total collection in Fiscal Year 2022-2023 The consumption taxes stood at about 30% of total revenue. The rest came from others, including non-tax (fees and charges) revenue
Revenue Target: 2023-2024 Ongoing Implementation of the strategic initiatives and reforms to enhance performance 40% above government target. NRA set internal working target of SSP 345 billion Approved Resource Envelop for the FY 2023/2024 set the non-oil revenue target at SSP 245 billion by about
4. Comparative Analysis Regional tax-to-GDP ratios in FY 2022-2023 Country GDP (in Billions USD) Tax-to-GDP Ratio Tanzania 67.84 16.3% Rwanda 11.07 15.08 % Uganda 40.53 13.9% Kenya 110.3 7.1 % 5.3 3.6 % South Sudan Average 12.22% Note: - South Sudan way below regional average - Target of 4.5% in set FY 2023-2024 - 6% target achieveable in first 3 years of Strategic Plan Implementation
Regional tax-to-national budget ratios Regional countries generate 50% - 70% of their National budget from domestic revenue mobilization. Less than 20% in South Sudan
FY 2023-2024 Target SSP 245 Billion (15% of the resource envelope but 10% of Expenditure) Internal working target: SSP 346 Billion (16% of Expenditure)
5. Medium-term Initiatives a. Widening the tax base Strict implementation of Ministerial Order 02/2023 that nullifies all non-statutory exemptions. New registration (increase no. of taxpayers) Tax compliance (increase filing and payment) Tax gap study (ascertain sectors for inclusion in the tax net) Enhance automation/digitalization of tax administration
b. Policy reforms/measures Legal framework needed: - VAT (replace sales tax) - Lotteries, gaming and betting taxation - Digital (excise) tax stamps - Tax administration procedures - Tax tribunal/special court - Alternative tax dispute resolution mechanism
6. NRA Asks A whole government approach/support on tax reforms to achieve sustainable revenue mobilization (exemptions, employees management, funding etc.) Timely drafting, passing and assent of all the laws by the Ministries of Finance, Justice, Cabinet, Parliament and Presidency. Review SOFA/EPSA Agreement on exempting subcontractors Public voluntary tax compliance (registration, filing and payment)
Asks State Governments and other entities involved in taxation to cooperate with NRA for efficient revenue collection (lessening tax burden on taxpayers through multiple collections). Enhance Electronic System Integration Effective anti-smuggling of goods and illicit trade Reviewing SOFA/EPSA Agreements exempting all subcontractors from paying excise duties.
Thank you Q&A
