Sudan hikes taxes as oil revenues set to dive

KHARTOUM, Dec 01, 2008 (AFP) – Sudan on Monday approved a 10-billion dollar budget for 2009, doubling taxes on communications and introducing a new duty on all imported goods to cover a forecast plunge in oil revenue.

The budget, passed overwhelmingly by parliament and which will come into effect on January 1, will slap a 20-percent tax on communications such as telephone and Internet bills, currently taxed at 10 percent.

The legislation introduces a five-percent tax on all imported goods, dealing a further blow to consumers in a country where government estimates that about 75 percent of people live in poverty are considered conservative in the West.

The budget estimates that oil revenue and taxation will generate just over 18 billion Sudanese pounds (eight billion dollars) and earmarks total government expenditure at 22.7 billion pounds (10 billion dollars).

The budget for security and defence topped government expenditure bills with 5.7 billion Sudanese pounds (2.58 billion dollars) set aside for 2009.

The budget was based on estimates that oil sales would generate 7.9 billion pounds (3.57 billion dollars) in 2009, down 43.7 percent from 2008.