JUBA, April 24 (Xinhua) -- South Sudan would strengthen collection of non-oil revenue by establishing a National Revenue Authority to enforce tax reforms to raise much-needed hard currencies, a senior government official said on Monday.
Deputy Minister of Finance and Economic Planning Mou Ambrose Thiik told journalists that the government has depleted its foreign currency reserves in the central bank and would work to set up the tax collection body by next month.
Thiik said weak taxation policies and infrastructure encouraged corruption that has drained the war-torn country of vital revenue.
He said the government is looking at hiring a foreign national to head the tax collecting body to ensure transparency and accountability.
South Sudan's main non-oil revenue currently comes from taxing of sales of goods and services, immigration, social security contributions, taxes on income and profits, and penalties.
Thiik said the government is seeking another 200 million U.S dollars from lenders such as the African Development Bank to cope with the current economic crisis.
"We have exhausted all our dollar reserves and we do not have any reserve in terms of hard currency," Thiik said. "We approached our international lenders for help in order to cover the gap and reduce food prices."
South Sudan depends on oil revenue for 98 percent of its budget, but production reduced significantly due to the 2013 civil war, causing most oilfields in the country's northern Upper Nile region to shut down as production fell to below 130,000 barrels per day (bpd), down from 350,000 bpd.
The east African nation is currently struggling with hyperinflation amid shortage of foreign reserves to support imports.
The exchange rate of the local currency, the South Sudan Pound, dropped to a record low of 20 to the U.S. dollar this week, further worsening food price hikes and fuel shortage.
