Africa-Press – Eswatini. Minister of Finance Neal Rijkenberg has clarified that if passed by Parliament, the proposed tax hike would be implemented in the 2023/24 financial year not the next financial year.
The minister apologised for the confusion caused and urged Members of Parliament to consider the proposal as he was yet to pilot the bill. This was during yesterday’s House of Assembly sitting where the minister was responding to the MP’s submissions. Minister Rijkenberg announced in his budget speech that government intended to lift the tax bracket, leaving more cash in people’s pockets earning less than E250 000 per year.
He said individuals would now only start paying tax from E4 000 per month instead of E3 500 per month. “Unfortunately, we cannot afford to have this reduction other than lifting the upper limits of those earning more. The proposal is to lift the upper tax bracket from 33 per cent to 36 per cent,” he said.
The minister explained that this would mean that 80 per cent of the taxpayers would be better off with more money in their pockets and 20 per cent of higher income earners paid more than E300 000 per year would be worse off. He asserted that it was understood that this would negatively affect everyone and appealed to all affected to put the interest of the poor above their own. This measure would be addressing the income inequality in the country.
During the first day of the debate, Members of Parliament fired warning shots at the minister on the proposed pay as you earn (PAYE) tax, labelling the proposal as a still born. “I do not have the bill now and even if I bring now, we are talking of next year, not this year.
If anything passes and it is up to the House to pass the bill or not and if it passes we are talking of first of April 2023, so I apologise for not being clear,” he explained.
His submission was met with laughter from the MPs. He added that they needed to understand the heart of government and government assured that during this time, they would try not to lift taxes and would stand by that.
He however, added that government needed money and the objective was to appeal to those that have more to take from them and give to those who have less in an attempt to bridge the inequality gap in the country.
He said inequality did bring pain and if this was not addressed, it could lead to having an unsustainable country and this measure would do just that. He asserted that government understood that this was a sacrifice they were asking people to make and it was a tough sacrifice with good consequences but he fully understood the frustration. Following the debate, Kwaluseni MP Mabhanisi Dlamini moved a motion directing the minister to furnish the House with written responses.
He was seconded by Dvokodvweni MP Mduduzi Magagula and Lobamba Lomdzala MP Marwick Khumalo. Khumalo however, amended the motion through and requested the minister to respond to a few of the critical issues raised during the debate.
Speaker Petros Mavimbela directed the minister to table the responses on the same day as the tabling of the portfolio committees reports for the ministries annual performance reports debates beginning today.
For More News And Analysis About Eswatini Follow Africa-Press
