Appendix I: The Tax System of Sudan
This appendix is organized in three main sections. The first section describes the operation and performance of the main taxes levied in Sudan between 1982/83 and 1993/94. It also highlights some of the important factors that have hindered the effective operation of certain specific taxes. The second section discusses the principal factors characterizing the tax system of Sudan that have lead to the decline in tax revenue in relation to GDP. It also provides estimates of the revenue losses generated by the existence of lags in the payment of taxes. The third section analyses and provides some estimates of seigniorage revenues, and of the “implicit tax” that is collected by the Government through an overvalued official exchange rate.