South Sudan's Revenue Authority Faces a Cash Conundrum: Who's Responsible for Solving the Shortage?
The South Sudan Revenue Authority (SSRA) has stated that solving the country's cash shortage isn't part of its mandate, sparking a debate about the responsibility for addressing this critical economic issue.
In a recent statement, SSRA Chairperson Stephen Dhieu Dau clarified the agency's role, emphasizing that its primary function is tax collection and remittance to the national treasury. He asserted, "The cash crisis or resolving the cash shortage is not within the mandate of the SSRA."
This statement comes amidst persistent economic challenges in South Sudan, including high inflation, currency depreciation, and limited access to cash. Dau highlighted the importance of aligning policy responses with the mandates of relevant government institutions, warning that misdirected measures could exacerbate the problem.
The SSRA's stance follows a directive by the outgoing Commissioner General, William Anyuon Kuol, who mandated that taxpayers pay taxes exclusively in physical cash. This move aimed to ease the liquidity crunch but led to delays at the Nimule border crossing, where traders faced difficulties making cash payments.
Dau cautioned that forcing taxpayers to pay in cash while their funds remain in banks could reduce compliance and undermine reforms aimed at digitizing revenue collection. He emphasized the potential consequences: "First, it will lead to a decline in tax collection. Second, it will worsen the cash shortage. And also, the reform the government has undertaken for years — to digitalize revenue collection — will be abandoned."
Aggrey Tisa Sabuni, technical adviser for revenue matters at the SSRA, stressed the importance of strengthening domestic revenue collection for financing the national budget. He noted that the authority contributed 1.1 trillion South Sudanese pounds (SSP) during the 2024–2025 fiscal year, matching oil revenues of 1.1 trillion SSP, for a total of 2 trillion SSP in realized income. Sabuni aims to increase collections to 1.5 trillion SSP in the 2025–2026 fiscal year and eventually rise to 10 trillion SSP, with or without oil income.
However, civil society activist Edmund Yakani argues that the liquidity crisis falls primarily under the Ministry of Finance and the central bank's purview, not the revenue authority's. He attributes the cash shortage to public distrust in the banking system, which has led some people to keep cash at home. Yakani proposes introducing new currency notes to encourage cash circulation and stresses the need for clear policies to manage the transition.
But here's where it gets controversial... Who should be responsible for solving South Sudan's cash shortage? The SSRA, the Ministry of Finance, the central bank, or a combination of these entities? Share your thoughts in the comments!
