Sudan profiting from telecom companies in S. Sudan: report

September 29, 2022 (JUBA) – Sudan still collects taxes from two major telecom companies operating in South Sudan, a parliamentary report shows.

These telecom companies, the report noted, do not remit profits to South Sudan government because they were licensed before secession in 2011.

South Sudan seceded from neighbouring Sudan after a referendum in 2011.

The new report, covering the 2022-2023 financial years, identified the mobile telecom operators, Zain and MTN as the companies paying taxes to Sudan.

The Finance and Economic Planning Committee, chaired by Changkouth Bichiock, presented the report before the national assembly on Tuesday.

The two telecom companies, the report said, pay frequency fees to Sudan.

“This is because Sudan has licensed the companies until 2024 for Zain and 2027 for MTN. “The house observes that frequency fees are still being collected by Sudan from Zain and MTN because their registration licenses are valid until 2024 and 2027 respectively,” Bichiock told lawmakers.

Legislators, after thorough deliberations, recommended that South Sudan begins collecting frequencies fees and profit taxes paid from both companies.

The assembly, according to Bichiock, has directed that South Sudan National Revenue Authorities (NRA) collects the taxes on behalf of the government.

“The house directs the NRA to collect Business Profit Tax [BPT], Excise, and Value Added Tax [VAT] from MTN, Zain, and Digital providers,” he said.

South Sudan has three Mobile Network operators which include, the Kuwait-based mobile operator, Zain. The South African-owned MTN and South Sudan-based Digitel Network also operate in the country.  MTN came into south Sudan before secession. It was licensed by Sudan before the split.

It, however, remains unclear when NRA would start collecting these taxes.

(ST)