Sudan to Raise Import Duties on 130 Items

Sudanese Customs Headquarters (Sudanese Customs Authority)
Sudanese Customs Headquarters (Sudanese Customs Authority)
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Sudan to Raise Import Duties on 130 Items

Sudanese Customs Headquarters (Sudanese Customs Authority)
Sudanese Customs Headquarters (Sudanese Customs Authority)

The Sudanese authorities have raised customs duties on 130 commodities, including gasoline and wheat, to cover the expected deficit in this year's budget.

The tariff hike, which immediately entered into force, would increase the prices of many imported and local goods amid the country's stagflation.

The Customs Authority stated that the amendment of customs categories came following the government's decision.

The increase in customs duties for transport vehicles of various weights ranged between 25 and 40 percent, while electric cars were exempted from any customs duties, and no new amendments were made to the customs of four-wheel drive vehicles.

Customs increases affected meat, fish, fruits, spices, and luxury goods, between 20 and 40 percent.

In February, Sudan's Sovereignty Council and the government approved the 2023 budget after a delay of over a month.

Budget revenues amounted to 7.363 trillion Sudanese pounds, and public spending amounted to 8.196 trillion pounds, with a deficit of 1.4 percent of GDP.

The state seeks to increase revenues and bridge the budget deficit by expanding the tax umbrella instead of raising taxes and rationalizing government spending.

The inflation rate in January dropped to 83 percent, compared to December last year, which recorded 87.32 percent.

The US froze aid worth $700 million and European Union countries announced the suspension of any financial assistance after Sudan’s military coup in October 2021.

The World Bank also suspended all aid to Sudan and halted decisions on any new operations after the military seized power.

The funds allocated to help civil transition are estimated at two billion dollars, in addition to supporting the budget and large economic projects that contribute to achieving estimated growth in the coming years.

The World Bank and the International Monetary Fund (IMF) had granted Sudan financial support to reduce its external debt by half under the Heavily Indebted Poor Countries (HIPC) initiative. The debt was reduced to $28 billion.



Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.