Sudan 2009 budget introduces tax hikes to offset oil drop
November 6, 2008 (KHARTOUM) – Sudan intends to raise certain taxes in order to make up for the sharp decline in oil revenue, its top finance official said today.
Al-Jaz said that Khartoum had a number of options to deal with the impact of global financial crisis on the economy but picked ones “that will not affect the ordinary citizens”.
The Sudanese official also said that the 2009 budget also focused on the social services and funding it to maintain “social stability” in the country.
He further reiterated the call to boost national productivity in non-petroleum sectors.
Oil exports represent 65% of revenue for Sudan and helped fuel its unprecedented economic growth despite US economic sanctions.
Khartoum has sought to downplay the effects of the global financial crisis saying that US economic sanctions provided immunity to its economy.
However as the credit crisis unfolded it led investors to believe that oil demand will be severely curtailed in developed nations and possibly China and India. Crude oil is down more than 56 percent from its all-time peak of $147.27 reached July 11.
Adding to Sudan’s woes is a weakening Euro against the dollar. Last year Sudan central bank converted all its dollar reserves into Euro in order to circumvent both current and future sanctions imposed by the US.
Al-Jaz called for strengthening economic ties with other countries and joint products with between the North and South.
(ST)