Kassala CoC calls for comprehensive market strike

Kassala’s Chamber of Commerce (CoC) announced a comprehensive strike of shops in the city’s markets, starting from today, due to increased taxation.

In a statement made by Haj Mirghani Abdelwahid, a member of the Kassala CoC, he said that the market strike with exclusion to “bakeries, restaurants, butchers, and pharmacies”, were in response to the “exorbitant taxation levied at market vendors”.

This follows news of nationwide market strikes El Obeid, capital of North Kordofan, El Gedaref, capital of El Gedaref state, and Ed Damazin, capital of Blue Nile state, which closed last month due to tax increases and Sudan's stagnating economy.

The decision to close markets in Ed Damazin came after the Tax Office failed to review estimates of business profits.

Activist Bakri Darweesh, in a statement to Radio Dabanga, said that he expects living conditions in Blue Nile state to worsen, especially as the region is witnessing renewed fighting that affects the agricultural season.

With rising inflation and low wages, most Sudanese are still struggling to afford basic resources. At the beginning of September, workers and traders went on strike in various parts of Sudan to protest increased taxes and high fines.

Economic impact

Economic analyst Hafiz Ismail told Radio Dabanga, that tax increases will eventually be reflected on the consumer, and “will lead to a weakening of purchasing power and reluctance to consume”.

He described the current economic policies as having nothing to do with the knowledge of the economy, giving the example that work has been suspended at some factories because of an increase in electricity and other costs.

The government lost more than $4 billion in international support, secured by the previous government of PM Abdallah Hamdok, when the military took power in a coup on October 25, 2021.

In August, Sudan’s Minister of Finance and Economic Planning, Jibril Ibrahim, confirmed that the country’s budget for 2023 “will be devoid of external support”.  

Since the coup, exports have also decreased significantly. Turning to domestic revenue “is unrealistic given the current economic and political crisis,” said Zaynab Mohamed, an analyst at NKC African Economics, in an interview with Bloomberg on January 25.

According to the analyst, with purchasing power declining and little support for military rule, tax hikes will push Sudan further into political turmoil.

Eight months on, “we are in a state of stagnation and the current protests are linked with other strikes all demanding the increase in salaries to match current inflation,” said Mohamed.