Times Of Swaziland: GOVT TO REMOVE VAT ON ICT PRODUCTS

GOVT TO REMOVE VAT ON ICT PRODUCTS
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BY KWANELE DHLADHLA on 07/12/2017 08:22:00


MBABANE – Good times lie ahead for the tech savvy populace.
Swazis could soon surf the net with pricey gadgets purchased at low prices,
following government’s undertaking to either remove or waive taxes on tablets
computers and various ICT equipment. Removal of taxes such as Value Added Tax
(VAT), which currently stands at 14 per cent, effectively means prices of ICT
equipment could also be drastically reduced in the near future. The price
reduction could primarily come about because there would be no need for
retailers to pass on the cost of VAT to the consumer as it would have been
scrapped altogether. The undertaking to remove taxes on ICT products by
government, unpacked in the National Trade in Services Strategy, has been
intended to foster investment in Information, Communication and Technology (ICT)
devices and equipment by the general public and ICT firms. Minister of Commerce,
Industry and Trade Jabulani Mabuza explained that this move formed part of a
series of initiatives that would be implemented by the State to improve trade in
services and ultimately improve on the provision of more employment
opportunities, poverty alleviation and ultimately improve the economy for the
better.
“Taxes on tablets, computers and other ICT equipment will be removed or waived
in order to foster investment in ICT devices and equipment,” reads the
document in part.
To complement the high number of people that would be in possession of the ICT
devices who could be in need of how to use them effectively, it has also been
pledged that government would also implement its e-government strategy and put
all departments online. “It (government) will first provide key government
services online. This will be the biggest stimulus or boost to the ICT
sector,” the strategy pointed out. Further, it has been mentioned that
government could introduce tax or fiscal incentives for investing in the ICT
sector, particularly for online businesses that would export their services.
“The incentives will include waiver of the VAT on inputs to the sector such as
telecommunications machinery and equipment and specialised business software,”
it was explained. Asked to shed light in relation to how government would have
to go about removing taxes on devices and providing tax incentives to improve
the ICT sector, Swaziland Revenue Authority (SRA) Commissioner General (CG)
Dumisani Masilela explained that various options would be put into consideration
prior to implementation of the strategy. He said options included, but not
limited to, rebates on importation of ICT equipment and provision of initial
allowances to businesses.
Specifically in relation to taxes on tablets, computers and other ICT devices,
Masilela explained: “legislation would have to be amended on the list of
taxable goods under VAT.” Federation of the Swaziland Business Community FESBC
President Tum Du Pont said the move by government to remove certain taxes to
improve ICT was commendable. “This is a good move but should not remain as a
document. There should be timelines allocated for the implementation processes
if we mean business,” Du Pont advised. Federation of Swaziland Employers and
Chamber of Commerce (FSE& CC) Marketing and Communications Coordinator Magman
Mahlalela said the development of ICT would greatly improve the country’s
rankings in the Ease of Doing Business.