Western Bahr el Ghazal: Wau Airline $5 Passenger Levy Non-Compliance Closes Airlines

• Western Bahr el Ghazal state authorities closed the Wau offices of Kush Airlines and Arojet Airlines.
• The closures resulted from the airlines' failure to collect a $5 stamp duty from air passengers.
• State officials assert the $5 passenger levy is a constitutional requirement for individual travelers, not the airlines.
• The State Revenue Authority cited Article 179 of the constitution as the legal basis for the state's revenue collection mandate.
• Authorities warned that private companies not complying with government revenue policies risk disputes and operational disruptions.

The aggressive enforcement actions taken against Kush Airlines and Arojet Airlines underscore the critical importance for businesses, particularly those in the aviation sector operating within South Sudan's Western Bahr el Ghazal state, to rigorously understand and comply with local revenue directives.

Authorities in South Sudan's Western Bahr el Ghazal state have ordered the immediate closure of the Wau offices belonging to Kush Airlines and Arojet Airlines. This decisive action stems from the airlines' failure to implement a mandatory $5 passenger levy, a stamp duty that state officials assert is constitutionally mandated.

The closures represent a significant escalation in an ongoing dispute regarding the collection of this charge, which the state insists is the responsibility of individual travelers rather than the air carriers themselves. The directive requiring airlines to collect this fee on passenger tickets has been a point of contention, leading to the current enforcement measures.

The State Revenue Authority (SRA) has clarified that the collection of this stamp duty is firmly rooted in the constitution, which delineates revenue streams for both national and state governments. Ishaq Mohammed Mustafa, identified as a consultant with the SRA in the article, emphasized that the $5 fee is a legally established charge applicable to all travelers, belonging directly to the state, and extends to various transactions beyond air travel, including those in local markets.

He further cited Article 179 of the constitution as the specific legal underpinning for the state's authority to impose and collect such duties. Former SRA Commissioner Makuec Deng Madut reiterated that the $5 charge is specifically intended for individual passengers, not the airline companies, asserting that the state government is fulfilling its constitutional duty to generate revenue for local development and stability. He highlighted that travel documents are legally subject to stamp duty, and the law mandates travelers, particularly foreign nationals, to pay this tax.

State officials indicated that Kush Airlines had previously complied with the requirement to collect the passenger levy but subsequently ceased doing so. Mustafa stressed that if airlines had objections to the directive, they should have formally communicated these concerns to the authorities instead of outright refusing to implement the legally mandated collection.

Brigadier General Julio Velario Osman, identified as the Caretaker Finance Minister in the article, affirmed that the state is enforcing the levy in strict accordance with constitutional provisions governing revenue collection. He issued a stern warning that private companies failing to adhere to government revenue policies risk significant disputes with state authorities, while also commending businesses that have complied. Osman underscored that taxes imposed on companies, including stamp duty, are provided for under the Republic of South Sudan's revenue provisions, with stamp duty specifically falling under the state's purview.

The aggressive enforcement actions taken against Kush Airlines and Arojet Airlines underscore the critical importance for businesses, particularly those in the aviation sector operating within South Sudan's Western Bahr el Ghazal state, to rigorously understand and comply with local revenue directives. This incident highlights the state's commitment to exercising its constitutional mandate for revenue generation and its readiness to impose operational disruptions, such as office closures, for non-compliance.

Companies must ensure they engage formally and proactively with authorities when faced with disputed directives to avoid similar operational challenges and maintain their standing within the regulatory framework.

Lawyers advising businesses, especially airlines, operating in South Sudan's Western Bahr el Ghazal state should note the aggressive enforcement of state-level stamp duties and the risk of office closures for non-compliance. Companies must understand their constitutional obligations regarding state revenue collection and engage formally with authorities on disputed directives to avoid operational disruptions.

Source: Original reporting via Radio Tamazuj