Sudan seeks to broaden tax base, freeze rates as pound tumbles

September 7, 2026 (KHARTOUM) – Sudan’s finance minister has ordered the tax authority to broaden the revenue base into new sectors while freezing existing tax rates, aiming to shore up depleted state coffers without stoking already high inflation.

The directive comes as local markets grapple with a relentless slide in the Sudanese pound, which has driven up import costs and sparked sharp price increases for staple foods, medicine, and fuel across the import-dependent nation.

Finance Minister Gibril Ibrahim instructed the Taxation Chamber to pursue “horizontal expansion” during a monthly collection review on Monday in Khartoum, the finance ministry said in a statement.

Ibrahim told tax officials to focus on bringing untaxed sectors into the formal economy and curbing widespread tax evasion, rather than raising levies on businesses and citizens facing severe erosion of their purchasing power.

The ministry said authorities are rolling out digital invoicing across Red Sea, River Nile, and Gedaref states to improve collection efficiency, alongside an “Electronic Inspector” platform to integrate state revenue systems.

War-damaged tax infrastructure across Khartoum and regional states is also slated for rehabilitation to restore disrupted revenue collection.

Soaring logistics costs, compounded by interstate checkpoints, transit levies, and customs duties, have exacerbated the economic strain, with merchants passing transport premiums directly to consumers as the currency weakens.