Authorities in South Sudan’s Western Bahr el Ghazal state have ordered the closure of the Wau offices of Kush Airlines and Arojet Airlines for failing to implement a $5 stamp duty on air passengers, escalating a dispute over the collection of the levy.
The closures followed a disagreement between the airlines and state authorities over a directive requiring the collection of the charge on passenger tickets. State officials say the levy is payable by individual passengers, not airline companies.
Speaking to Radio Tamazuj on Saturday, Ishaq Mohammed Mustafa, a consultant with the State Revenue Authority (SRA), said the collection of stamp duty was provided for under the constitution, which outlines revenue sources for national and state governments.
Mustafa said the state government had directed Kush Airlines to collect the levy through ticket sales, but the airline had refused to comply.
“Stamp duty is a fee provided for by law for all travellers. It belongs to the state and applies to various transactions, including those in markets and other areas,” he said.
He said the airline should have formally communicated its objections to the authorities rather than refusing to implement the directive.
“They were instructed to implement the stamp duty on tickets, as required by law. They refused. They should have written to us if they objected,” Mustafa said.
He cited Article 179 of the constitution as the legal basis for the state’s authority to collect stamp duty.
SRA Commissioner Makuec Deng Madut said 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.
“Western Bahr el Ghazal is part of South Sudan, and we follow the national legal procedures that empower each state to collect revenue for development and stability,” Madut said.
“The law requires travellers, particularly foreigners, to pay the tax, not the company,” he added.
Caretaker Finance Minister Brigadier General Julio Velario Osman said the state was implementing the levy in accordance with constitutional provisions governing revenue collection.
He said 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. He also commended businesses that had implemented the directive.
“We want to clarify 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,” he said.
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