Several truck drivers at Elegu are still in protest over high taxes despite the ministerial order issued by the Ministry of Trade and Industry suspending the clearance agent.
It has been almost one week since the truck drivers at Elegu refused to comply with the charges from the Ugandan authorised companies. They accused the companies of high taxes and refused to clear their goods for entry into South Sudan.
The South Sudan Ministry of Trade and Industry allegedly contracted a K-Polygone Multinational Company to manage the electronic cargo tracking as well as an issue all the certificates for import to all cargo truck drivers and importers entering South Sudan. However, the same company [K-Polygone] subcontracted VESCO Company in Uganda to carry out activities, leading to higher taxes.
This has led to shortages of goods entering the country, including fuel.
Speaking to The City Review, the Chairperson of Clearance and Forwarding based at Nimule border point, Deng Daniel, said the VESCO Company was still charging importers highly despite the ministerial order from the minister of trade and industry.
“Since the first lot of the trucks were freed by the order last week, the detention of other trucks surprised the importers, especially those within Uganda are most affected,” Deng said.
“The minister suspended their operation but there is still a pulling of rope between the company and importers because there are those who do not comply with the charges imposed by the company,” he added.
Deng said the affected trucks deal in fuel, sugar, cooking oil, beer, and beer.
He stated that the company imposed a variety of fees, including an administration fee, a commission fee, and taxes based on the volume of imports into South Sudan.
Deng warned that the problem would lead to a shortage of goods in the country if left unaddressed.
Last week, Sudi Mwatela, head of long-distance drivers, said every truck was being charged $50 to $5 per tonne plus other charges called “intervention.”
According to him, if a transporter is charged 3 million Ugandan shillings, then 1.8 per cent of the transportation has to be paid to INVESCO Uganda, which is the partnership with K-Polygone of South Sudan.
He said the charges are abnormal.