- BE envisages event being oversubscribed, as responses from members and business community has been resounding
- Issues to be discussed include the introduction of presumptive tax for SMEs, the increase of PAYE from 33% to 36% for middle to high income earners, capital gains tax, tax on worldwide income, tax on long-term contracts and a host of other issues.
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By Inside Biz
Business Eswatini (BE) recently announced that they will host a first-of-its kind Tax Indaba on the 27th July, 2022 to be held at the Royal Villas in Ezulwini. In their latest update to members, Business Eswatini stated that due to the appetite for the event they envisage that the prospects of the event being oversubscribed is real, hence the need for delegates to book their seats early so as to secure a seat.
BE, Chief Executive Officer, (CEO) Nathi Dlamini states that the forum will discuss the tax regime of Eswatini and how it impacts both small and big businesses in the country. He says most importantly, it will avail a platform for the business community to engage on a number of contemporary issues of tax, including the introduction of presumptive tax for small businesses, the increase of PAYE from 33% to 36% for middle to high income earners, capital gains tax, tax on worldwide income, tax on long-term contracts and a host of other issues.
Dlamini adds that the Indaba will educate and sensitize the business community on developments in the tax administration landscape and to raise the business community’s awareness and knowledge on prevailing tax issues. The CEO notes that key stakeholders such as the Eswatini Revenue Service (ERS), Ministry of Finance and the Revenue Appeals Tribunal Eswatini will also be involved in order for them to pick up the issues first-hand and respond to questions from participants.
He observes that the response from the business community has been resounding, which clearly indicates the appetite the market has for tax matters. “Some businesses have even opted to close shop due to tax issues. The tabloids have, in recent times, featured stories about companies with huge tax bills most of which threaten the existence of those businesses. A number of our members have approached the office to register their pains around the subject of tax. The resultant establishment of the Revenue Appeals Tribunal is also as a result of the protracted disputes and will hopefully resolve these disputes leading to a healthy tax climate in order for businesses to ably and happily pay their taxes” he notes.
“Indaba will educate and sensitize the business community on developments in the tax administration landscape and to raise the business community’s awareness and knowledge on prevailing tax issues”
The well-spoken CEO says such a forum is important for investment retention and attraction; as the event has already drawn interest from participants beyond the borders of Eswatini. Mr. Paul Friedlander who resides in the USA was also quoted saying that “conducive markets will always attract local and foreign direct investments projects that create quality jobs. The tax regime is a critical component of the attractiveness of an investment destination. Eswatini is well-positioned to exploit this opportunity”, he added.
Moreover, Dlamini notes that it will be interesting to see the outcomes of this engagement given the latest trends in the form of escalating prices of basic commodities. “This erodes the purchasing power of consumers at a time when businesses are not performing optimally to compensate for the income gaps caused by this trend. Conversely, there is also a huge need for improved service delivery from government who relies on tax to provide such services” he said.