Sudanese businessmen reject government plans on VAT
September 16, 2013 (KHARTOUM) – The Sudanese Businessmen and Employers Federation (SBEF) has expressed reservation on the government’s anticipated economic measures including raising the Value Added Tax (VAT), increasing the dollar exchange rate for customs purposes, increasing customs on luxury goods and the significant increases in commodity prices which ranges between 40%-%50.
The business body called upon the government officials to make the Sudanese people aware of the actual increase in the fuel price, VAT, and the dollar exchange rate for customs purposes, denying that they would bear additional burden as a result of lifting subsidies on fuel and goods.
It also renewed its rejection of using businessmen as “hat stand” for justifying merchant’s greed, and urged the government to speed up implementation of the new economic measures to prevent any increase in prices prior to lifting subsides.
The Sudanese government postponed the removal of subsides on several basic commodities as the NCP said its lift should come into force after concluding consultations with the political forces and civil society groups.
The sudden delay follows rumours about sharp divergences within government ranks about these unpopular decisions, which are seen necessary by the finance minister but disastrous by other members who fear that it will push people to take the streets against the regime.
The Sudanese government cancelled an extraordinary cabinet meeting scheduled to be held last Sunday to endorse the increase of prices of basic commodities including fuel, without further explanations.
Different sources in Khartoum say the government delayed the implementation of the decision following recommendations from the security apparatus which reported a situation of public discontent against the government.
The Sudanese opposition umbrella organisation known as the National Consensus Forces (NCF) announced that it is planning to organise public sit-ins to resist the government’s anticipated decision.
Also the Sudanese Revolutionary Front (SRF), an alliance of rebel groups issued a statement calling on their supporters inside the country to protest against the economic reforms.
However the finance minister Ali Mahmoud denied on Sunday that the cancellation is related to fears of demonstrations to protest against such measures. The Sudanese people showed patience and accepted decision biggest and toughest than the removal of subsides, he said.
The NCP media secretary Yasser Youssef told reporters following a meeting of the political sector of the ruling party on Sunday that the announcement of these economic reforms depends on the completion of consultations with the political forces.
(ST)