Africa-Press – Eswatini. Government is expecting to have collected at least E17.7 billion by the end of the 2021/22 financial year which ends on March 31, 2022. This will reflect a 93 per cent collection of the annual target, the ministry of finance has revealed.
The revenue projected in the 2021/22 fiscal year when compared to the previous year’s collection reflects a six per cent decline.
This is attributed to a 24 per cent decline in Southern African Customs Union (SACU) revenue and policies that eventually did not get approved for implementation in the period under review.
“Revenue items that recorded a positive performance compared to the previous financial year are company tax, Value Added Tax (VAT), Pay As You Earn ( PAYE) road toll, fuel tax, motor vehicle levy, alcohol and tobacco, fees and fines and education loan repayment,” states the ministry in its annual performance report.
Income tax The ministry further states that the total taxes collection is expected to amount to E6.1 billion compared to a budget of E6.3 billion, which reflects a 97 per cent collection of the annual budget.
This collection indicates a growth of 10 per cent in income taxes, which represents to 29 per cent and six per cent increase in collection of company taxes and PAYE, respectively.
“The increase in collection is due to the relaxed COVID-19 restrictions which resulted in more certainty in the economy, hence more companies are operating at full capacity. In addition, more employees are back to work compared to 2020/21,” stated the ministry.
Taxes on goods and services According to the report, total taxes on goods and services are good projected to amount to E11. 2 billion.
There are three revenue items under taxes and goods, which are SACU, VAT and fuel tax. The ministry states that other small items which include lotteries and gaming, road toll, fuel tax, motor vehicle levy, alcohol and tobacco contribute about one per cent of the overall taxes on goods and services combined. SACU contributes 66 per cent of the revenue expected whilst VAT and the fuel tax contribute about 24 per cent and 10 per cent, respectively.
Revenue received from SACU amounts to E6. 3 88 billion, while VAT amounting to E3.2 billion and fuel tax of E1.2 billion was recorded in the year under review. SACU collection in the financial year 2021/22 declined by 24 per cent compared to the previous year. VAT increased by nine per cent whilst fuel tax increased by two per cent.
The increase in VAT is attributed to eased COVID-19 restrictions in the 2021/22 financial year, which increased the quantities of goods and services demanded or supplied whilst the quantities of fuel demanded also increased. None tax revenue, on the other hand, is expected to amount to E468. 2 million, which shows no significant value compared to the previous year’s collection. The collection is expected to reach 94 per cent of the annual target.
Property income declined by 25 per cent compared to the previous financial year because of the expected decline in dividends. Fees and fines showed a 32 per cent increase due to full impact of the review on user fees, which was implemented late in the 2020/ 21 financial year.
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