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SET THE PRIVATE SECTOR FREE

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It is simple. To generate more revenue, government needs to set people and businesses free! Yes, dare to set them free and the economy might just surprise us and turn around for the better.


The purpose of any government, as we know it, is to control people and the economy, and so this freedom kind of logic might take a while to sink in. The starting point is for government to do a little bit of self- reflection, focusing on the fundamentals of why it exists.

To put it simply, government exists to organise the economy, to become an ‘invisible hand’ in correcting market and social failures, and to make sure that people develop to enjoy a better standard of living. So everything government does is for the people, and without the people, there is no point in government. Basically, government should create a conducive economic and social environment so that people and their businesses are well-positioned to be productive to their full potential.


As it is, people wonder why they wake up to go to work every day. The invisible hand is no longer invisible anymore. Government is living in our pockets and everyday it sinks its claws deeper into our wallets demanding more and more of our money.

If you get lucky enough to get a well-paying job, you know very well not to get carried away on that income because close to half of it will be reserved for the g-wallet. With government in our pockets, our incomes are reduced to peanuts, and in turn, suffocates the dynamism of economic activities in Eswatini. If you dare to start a business, the taxman will nibble on your cash accounts to suck as much money as it can out of your business.


Don’t get it twisted: I am not against paying tax; it is just that taxing the same people and businesses over and over again does nothing to grow the economy to improve the standard of living in Eswatini. As it is, the system penalises people who go out of their way to earn a decent living for themselves and their families. It also penalises the businesses which are tirelessly trying to contribute to economic activities in Eswatini, of which, if they were given the opportunity to flourish, would contribute immensely to government revenue. As it is government is perpetuating tax fatigue among income earners and businesses in the Kingdom of Eswatini.


Think about this – we are a small population – 1 185,429 people to be exact according to the 2016 Labour Force Survey. I use the Labour Force Survey to point out that we only have a limited labour force from which government can keep demanding income tax.


Only 373 869 people make up the labour force of which 77 per cent (288 044 people) are employed. That does not mean 288 044 people enjoy cushy jobs in Eswatini, a significant proportion of these people probably do not even come home with a minimum wage paycheque.

Take away the estimated 44 000 civil servants that government has to dole out E800 million per month in salaries, there is probably less than 100 000 people out of the total labour force that the Swaziland Revenue Authority depends on for tax income. What do you think is the value of the 44 000 civil servants in growing the Eswatini economy? If we have too many people working for government, who in fact are not creating any real goods and services, how can we expect the economy to grow?


On the other hand, the limited private sector workforce is taxed through the roof which stifles growth of the real economy. What I am trying to point out is that very few people are actually responsible for tax revenue in Eswatini and so the tax burden on these people is just too high. The problem is that government is focused on getting more money from the very same people who are already paying more than a fair share of the tax collected. At the same time, government expects these very same people to have enough money to support the existing businesses in Eswatini.


Set people free by making sure that they go home with enough money in their pockets to support the business activities of our economy in Eswatini. Along with setting people free, government should also make sure that businesses are set free financially so that the number and size of businesses operating in the private sector can grow. With growth of businesses and expansion of the private sector, government would have a greater pool of people and businesses contributing to government revenue as well as would not have to be heavily dependent on taxing the same people over and over again.

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