GOVT RELIEF FOR BUSINESSES NOT ENOUGH?

MBABANE –  Some analysts feel government can do more to cushion businesses in response to the coronavirus pandemic.
The analysts feel the decisions taken to help businesses and employers seem to be not enough as compared to that of neighbouring South Africa. Most of the measures have nothing to do with the size of the two economies, as they relate to relief in payments of taxes, among others.

Notable measures taken by the neighbouring country include fast-tracking the payment of employment tax incentive reimbursements from twice a year to monthly to get cash into the hands of compliant employers.

South African businesses that are tax compliant and have an annual turnover of less than R50 million will be eligible for a delay of 20 per cent of their pay-as-you-earn liabilities for the next four months. They will also be eligible for a delay in their provisional income tax payments without penalties or interest over the next six months.

declarations

For Eswatini, taxpayers projecting losses will file loss provisional returns. The due date has been postponed by three months, which means June declarations and payments are due in September. December declarations are due in March 2021. There is also an extension of returns filing deadlines by three months before penalties kick-in for small and medium enterprises.

“For old debts, the Eswatini Revenue Authority will waive penalties and interest if principal is cleared by the end of September 2020. This applies to all debts (excluding Customs debt). This is meant to assist taxpayers clear their old debts and accumulated interest and penalties and start on a clean slate for their business to enhance recovery,” Minister of Finance Neal Rijkenberg announced recently.

In South Africa, at least R500 million is available immediately to assist small and medium enterprises that are in distress through a simplified application process. On top of that, South Africa is setting up a temporary employee relief scheme, which will help companies that are in distress to pay their workers and avoid retrenchments during the lockdown.

A local analyst, speaking on condition of anonymity, felt government would have matched most of the measures taken by South Africa, especially regarding taxes, as most companies were already in distress.
Minister of Commerce, Industry and Trade Manqoba Khumalo was yet to react on the measures by noon yesterday following an electronic mail forwarded to the office.

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