Times Of Swaziland: SET THE ECONOMY FREE

SET THE ECONOMY FREE
================================================================================
The Editor on 07/03/2019 01:34:00


Comment
What will it take to emancipate the economy of Eswatini from its below one per
cent growth shackles?
Taxing its people to the bone to reduce their spending power or unlocking the
full potential of the private sector to raise more business profit tax revenue?
The answer is no brainer and this is why Finance Minister Neal Rijkenberg can
blame nobody for the labelling of his budget as highly punitive with most
economists predicting a retraction of the economy, much against the mandate to
achieve the opposite.
The minister sees otherwise and argues that the incentives he has lined up for
the business sector will far outweigh the taxes on the consumer.
All parties do agree, however, that this country deserves to thrive in a
free-market economy that is not stifled of growth by stringent licence
requirements that have only helped push the investor preference away from our
shores, condemning us to ranking 117 of 190 countries in the ease of doing
business. Yesterday, the Ministry of Commerce, Industry and Trade announced
changes to the trading licensing order that seek to remove some of the
bottlenecks that have long held our economy to ransom.
We trust that this is the first step towards the long awaited deregulation of
the business industry. And, hopefully, the dagga industry for medicinal
purposes.
Liquor licensing may be part of the beneficiaries of these changes and this can
be viewed in a negative light in some quarters. The truth is, operating such
businesses comes with great responsibilities and the consumers cannot be
exempted from same.
The competition that this move will create can only benefit the consumer in
lower prices while pleasing the businesses with higher spending. While at it,
the ministry ought to take a deeper look into all the other areas of the
industry that are frustrated by unnecessary bureaucracy.
The small business community has welcomed the changes that will unlock some of
the potential of the Eswatini economy that is desperate for more profit tax
revenue and, most importantly, job opportunities. We now look forward to step,
two, three and more of the Finance minister’s promises to set the economy
free.