In a significant policy reversal, the government of South Sudan has responded to a U.N. appeal and reversed its decision to impose taxes and fees on humanitarian services and products.
Juba, South Sudan —
South Sudan's finance minister explained in a press release that while U.N. humanitarian organizations and diplomatic missions are tax-exempt, companies contracted by the U.N. Mission in South Sudan are not exempt because they are"profit-making entities" and are subject to taxes under the agreement the mission originally signed with South Sudan.
With nearly half the country's population facing acute food shortages and the looming threat of floods, the U.N. stressed that new taxes would have added $339,000 to the UNMISS monthly operational costs, affecting food and humanitarian assistance operations.Timo Olkkonen, who heads up the European Union delegation to South Sudan, one of the major international donors to the African country, said agencies need ample time and resources to prepare and deliver relief assistance.
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