Two airline offices closed in Wau over $5 passenger levy dispute

Authorities in South Sudan's Western Bahr el Ghazal state have shut down the Wau offices of Kush Airlines and Arojet Airlines due to a dispute over a $5 stamp duty on air passengers. The closure was prompted by the airlines' failure to implement the levy on passenger tickets. State officials argue that the levy is payable by individual passengers, not airline companies. This move escalates a disagreement between the airlines and state authorities over the collection of the charge.

According to Ishaq Mohammed Mustafa, a consultant with the State Revenue Authority (SRA), the collection of stamp duty is provided for under the constitution, which outlines revenue sources for national and state governments. He stated that the state government had directed Kush Airlines to collect the levy through ticket sales, but the airline refused to comply. Mustafa emphasized that the airline should have formally communicated its objections to the authorities rather than refusing to implement the directive.

SRA Commissioner Makuec Deng Madut clarified that the $5 charge was intended to be paid by individual passengers rather than airline companies. He said the state government was exercising its constitutional mandate to raise revenue for development and that travel documents were subject to stamp duty under the law. Madut added that Western Bahr el Ghazal is part of South Sudan and follows national legal procedures that empower each state to collect revenue for development and stability.

Caretaker Finance Minister Brigadier General Julio Velario Osman stated that the state was implementing the levy in accordance with constitutional provisions governing revenue collection. He noted that Kush Airlines had previously complied with the requirement but later stopped collecting the duty. Osman warned that private companies that failed to comply with government revenue policies risked disputes with state authorities and commended businesses that had implemented the directive.

The dispute over the $5 stamp duty highlights the challenges of revenue collection in South Sudan. The country's constitution provides for revenue sources for national and state governments, including stamp duty. However, the implementation of such levies can be contentious, particularly when it involves private companies. The closure of the airline offices in Wau is likely to affect passengers and the aviation industry in the region.

The state government's decision to close the airline offices demonstrates its commitment to enforcing revenue policies. Osman emphasized that taxes imposed on companies are provided for under the revenue provisions of the Republic of South Sudan, including stamp duty, which falls under the state's mandate. The state authorities' actions are likely to have implications for the aviation industry and revenue collection in South Sudan.

The situation may have implications for other airlines operating in South Sudan. The country's aviation industry may experience disruptions due to the dispute over the $5 stamp duty. It remains to be seen how the airlines and state authorities will resolve the issue. The closure of the airline offices in Wau is a significant development in the dispute over revenue collection in South Sudan.

Key points

• The state government shut down the offices of Kush Airlines and Arojet Airlines in Wau for failing to implement a $5 stamp duty on air passengers.
• The $5 charge is intended to be paid by individual passengers, not airline companies, according to state officials.
• The dispute highlights the challenges of revenue collection in South Sudan and the implementation of levies by private companies.