The tax authorities of Uganda and South Sudan signed a memorandum of understanding on Tuesday, in the Ugandan capital, Kampala, outlining their cooperation in enforcing their respective obligations.
During a meeting between URA’s Commissioner General John Musinguzi and a delegation from South Sudan, the Uganda Revenue Authority (URA) and the National Revenue Authority of South Sudan (NRA) signed the agreement. This agreement will enable the two entities to cooperate and collaborate more effectively in fulfilling their respective statutory obligations.
According to the agreement, the Uganda Revenue Authority will track goods destined for South Sudan and ensure they are not diverted to the Democratic Republic of Congo.
In addition, it is expected to help both countries increase revenue collection and curb tax evasion.
In a tweet posted on Wednesday, URA said that the agreement stipulates the two tax bodies would provide each other with assistance in digital transformation programs, tax enforcement planning, information sharing, training, and benchmarks, among other things.
Speaking at the event, Ambassador Simon Juach Deng of South Sudan to Uganda emphasised that the memorandum is formalizing the pre-existing relationship between the two countries.
“Uganda is one of the neighbors that we are doing a lot of business with, and we have a lot to learn from them, more so from URA because they are ahead of us in revenue mobilization,” he said.
John Musinguzi, URA’s commissioner general, thanked the NRA for the support accorded to the URA in cross-border trade.
“Thank you for supporting our joint efforts that have seen our countries create a conducive environment for fair and compliant business and as well fight vices like smuggling,” said Musinguzi.
The Commissioner General of the NRA, Athian Ding, provided reassurance to the URA during the meeting, affirming their commitment to cooperating in the battle against smuggling. He also suggested that implementing stricter border controls would effectively help mitigate this issue.
Earlier this year, the URA and NRA entered into a bilateral agreement in which they pledged to carry out joint border patrols and surveillance operations along the border. The objective was to combat smuggling, a problem that continues to erode the revenues of both nations.
Although South Sudan stands as one of Uganda’s major trading partners in the region, various challenges, such as insecurity, smuggling, and strikes by truck drivers, have tainted trade relations between the two countries.
