Head of Importers Criticizes Customs Increase, Says It Contributes to Currency Decline

Khartoum – Sudanhorizon

The head of the National Chamber of Importers, Al-Sadiq Jalal Al-Din Saleh, criticized the decision to raise the customs dollar rate from 2,827.61 pounds to 3,222.8 pounds—an increase of 14%—describing it as “catastrophic” and saying it contributes to the further deterioration of the Sudanese pound and places additional strain on people’s livelihoods.

In press statements on Friday, Jalal said that “the Sudanese economy is rich and strong, but it is being managed with policies that destroy rather than build,” particularly when linking the decision to increase the customs dollar—implemented today—with the package of measures issued by the Prime Minister aimed at regulating imports to achieve better balance in the trade balance.

He stressed that the Finance Minister’s repeated statements since June 2021—that there is no customs dollar and that it has been replaced by the exchange rate—are inaccurate. He explained that the customs dollar is a tool used to determine customs value and is commonly employed by countries to control inflation, noting that the decline of the Sudanese pound is due to poor economic performance and the state’s inability to control the exchange rate.

The head of the Importers Chamber added that raising the customs dollar will increase the cost of goods, which in turn will raise overall price levels and inflation rates. This would further weaken the Sudanese pound and lead to a sharp decline in living standards, in addition to expanding the shadow economy and increasing rates of smuggling and customs and tax evasion through official documentation.

Shortlink: https://sudanhorizon.com/?p=12738