ECONOMISTS LAUD MOVE

MBABANE – King Mswati III’s directive that profit making organisations should pay corporate tax and start paying dividends in the coming financial year is a good move as it will boost the country’s revenue base, economists have noted.

The King said, as indicated last year, he was pleased to inform the nation that contributions by public enterprises to the consolidated fund would commence at the beginning of the next financial year. This means there will start declaring dividends to government. In the past, there had been no instrument compelling parastatals to declare dividends to the shareholder.

Those which were doing it were doing it out of their own will. One of the public companies which was declaring dividends religiously was the Swaziland Electricity Company (SEC). Economist Christopher Fakudze was of the view that the declaration of dividends by public companies would boost government’s revenue. He said if the directive would be implemented, the country would be able to fund a lot of projects that could contribute to economic development.

He said the directive was politically and economically in order as it came at a time where the shrinking of revenue had been noted. “This will boost the economy and help government to fulfil its obligations,” Fakudze said.
Regarding the issue of making the companies pay corporate tax, Fakudze said it was a commendable directive which could also help the country to have a wide revenue base.

The country’s corporate tax is 27.5 per cent. Currently, some of government companies are exempt from paying corporate tax.
...

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: