Tax Burden Forces Shop Closures, Traders Appeal for Relief

Traders in Juba City have raised alarm over the continuous closure of their shops by the City Council due to unresolved tax issues.

Taxes levied by the Juba City Council on businesses include the annual town rate, annual rental value, service fees, garbage fees, signboard fees, among others.

In recent weeks, City Council officials have been cracking down on traders, closing shops for what they claim is non-compliance with tax obligations.

However, shop owners argue that delayed tax payments—rather than refusal to pay—are being used as grounds for closure, a recurring problem that they say demands immediate government intervention.

Michael Abugi, a retailer at Custom Market, said the City Council imposes high tax amounts that many small traders cannot pay all at once.

“They ask for one million pounds in taxes, yet our businesses don’t generate that much. If you explain that, they just shut your shop,” Abugi said.

He stressed that several shops have been closed simply because the owners requested a short delay—not because they refused to pay.

Abugi appealed to both the national and state governments to step in and protect small businesses from collapsing under the weight of excessive taxation.

Ali Hassan Abdul, another trader, echoed the frustration and urged the government to review the entire tax system.

“They ask me to pay for garbage collection, yet no one collects garbage at my shop. Then they charge service tax—but what services are they offering?” Hassan questioned.

He called on the City Council to reduce or remove taxes that are not reflected in services provided to the traders.

Adding his voice, the Chairperson of the Central Equatoria State Chamber of Commerce, Robert Pitia, called on the Juba City Council to eliminate unnecessary taxes, warning that the current policy discourages small business development.

He condemned the practice of closing shops rather than seeking alternative, amicable solutions to tax disputes.

In response to the growing outcry, Central Equatoria State Governor Augustino Jadalla Wani directed the City Council and its tax enforcement units to cease aggressive methods of collecting taxes.

The Governor’s intervention followed increasing public concern that the City Council’s tax enforcement policies were discouraging entrepreneurship and stifling local businesses.

Previously, tax collectors continued to close shops during supervision visits, targeting businesses unable to immediately pay taxes.

As part of his intervention, Governor Jadalla urged the City Council to adopt more business-friendly tax collection approaches rather than shutting down operations.

In a statement released after a meeting with Juba City Council officials, the Governor emphasized that small businesses should be supported, not punished.

“The Governor expressed strong disapproval of the closure of shops belonging to traders who are unable to meet tax obligations. He issued a directive to halt such closures,” the statement partly read.

He also called on the Council to professionalize its operations and prioritize service delivery.

Jadalla further directed that tax revenues should be transparently reinvested in public services, reinforcing the idea that taxation must directly benefit citizens.

For his part, Johnson Swaka, Mayor of Juba City Council, affirmed the administration’s commitment to improving service delivery.

“We collect money from the citizens, and that money always goes back to the public through services,” Swaka said.

He acknowledged the existing challenges within the Council, noting that support from the state and national governments is essential in addressing issues beyond the Council’s capacity.

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