Africa-Press – Eswatini. Mavela Sigwane, head of business transformation at the Federation of Eswatini Business Community (FESBC) has said it is time they considered stopping paying tax as businesses until a political response is made to the political question affecting their businesses.
Sigwane said they had a serious problem ahead of them as businesses. He said an eminent economic recession was on its way based on the recent increase in interest rate of 6.6 per cent, the proposed 21 per cent electricity hike and the fact that the country was on a democratic revolution.
“In a time when we are due for elections next year means government spending is going to be reduced drastically as everyone will be careful on what he or she commits government to before it exit office. So those suppliers of government may not be paid until 2024 and this is the reality hitting us in the face,” Sigwane stated.
He said another factor was that fuel increased significantly while food prices sky rocketed.
According to Sigwane, the continous stop and start breaks due tothe political unrest has already affected businesses a great deal. “With politicians continuing to enjoy monthly salaries and seating allowances from the tax payers, it is time we considered stopping paying tax as businesses until a political response was made to the political question affecting our businesses,” Sigwane stated.
He explained that the recently signed tax deal of 20 years need careful implementation to ensure full benefits were enjoyed by businesses.
He further stated that the Rhwanda Business Federation MoU with FESBC needed to be progressed to signature to ensure strong bilateral relationships.
“The ITC Business relationship with the EU delegation has significant benefits, which we need to explore for our members,” he stated.
According to Sigwane, the State of Business Relations (SBR) forum established through the assistance of EU and ITC needed to be pursued to the benefit of ease of doing business by local businesses.
He further highlighted the ESPPRA procurement ill-habits to FESBC members tendering for government and private sector related tenders.
The head of business transformation said they have to schedule an audit of contractual agreement entered to by members with an option to re-negotiate far grounds of engagement for members.
“We are aware of the unfair contractual engagements in RES, Ubombo, Montigny, Peak Timbers, Matsapha Industrial area, Coal haulage sector (Sidvokodvo), ESWADE, municipalities, EEC contractors, Treasury, Government Tender Board,” Sigwane alleged.
He said there was a need for an establishment of FESBC finance wing to asssist businesses with quick short to medium loans, adding that this should be able to cover loans from as little as E20 000 to E5 million as per FESBC strategy.
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