SD’S MAJOR REVENUE SOURCE BOOSTS COMPETITIVENESS

MBABANE – Swaziland’s major source of revenue, SACU, continues to improve competitiveness.  This has been done through the signing of a Cooperation Framework Agreement for the implementation of the World Customs Union (WCO) - Southern African Customs Union (SACU) Connect Project which has, among other things, helped in the development of a Regional Customs Risk Management Strategy and three joint enforcement operations targetting illicit trade in tobacco, alcohol, and textile and clothing industry.

Southern African Customs Union (SACU) Communications Manager Kungo Mabogo has reported that SACU Executive Secretary Paulina Elago and Secretary General of WCO, Dr Kunio Mikuriya, signed the agreement expected to greatly improve efficiency in many other areas on Monday at the Headquarters of the WCO in Brussels, Belgium.
Mabogo explained that SACU and WCO had  established and maintained a long standing partnership under the framework of the WCO-SACU Connect Project that focuses on IT Connectivity;  Risk Management and Enforcement; Trade Partnership; and Legislative Framework.

Elago reportedly said; “The signing of the Cooperation Framework Agreement signals the commitment by the WCO and SACU to continue working together to strengthen the relationship and partnership in order to derive tangible benefits that will improve the trading environment in SACU.”

In the 2017 report, the Swaziland Revenue Authority (SRA) reported that in spite of the parties engaging in discussions about introducing changes to the Revenue Sharing Formula (RSF), this initiative had not been concluded and funds in the Common Revenue Pool (CRP) continued to be shared in accordance with the existing formula.  It was stated that SACU receipts amounted to E5.25 billion compared to receipts of E6.9 billion in 2015/16 owing to the variances between the projected CRP and audited actual collections.  The receipts reportedly declined by 25 per cent compared to 2015/16.

“This source of revenue remains unreliable given the uncertain global and regional developments coupled with the global trade liberalization agenda, with prospects being highly unfavourable in the medium term,” noted SRA. It should be mentioned that the country is on a policy drive to reduce the heavy reliance on SACU remittances.
SRA reported that internally, revenue mobilisation efforts had been strengthened to support domestic revenue mobilisation as shown by the continuous decline in the share of SACU in total revenue.
“This ratio of SACU receipts to revenue has been reduced from 60 per cent in 2012/13 to 40 per cent in 2016/17,” added SRA.
 

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