HIGHER TAX WILL HELP BOOST ECONOMY, SAYS PM
PIGG’S PEAK – High tax revenue is the solution to beef up the country’s domestic income, which is still very low, according to Prime Minister (PM) Sibusiso Barnabas Dlamini.
The PM was speaking during the launch of the Cabinet ministers’ retreat at Pigg’s Peak Hotel and Casino yesterday.
For the past few years, the retreat has become an annual mandatory event for the minsters.
Dlamini said periodically, it was essential for Cabinet to review its progress on respective programmes and plan ahead for the future.
The PM said the country still relied on the Southern African Customs Union (SACU) for revenue.
SACU receipts account for over 50 per cent of the country’s revenue.
However, the PM said the latest strategies should be applied to accelerate the rate of tax compliance to boost the domestic revenue. “That should be the first point of reference before considering any increase in tax rates and their deterrent effect on new investment,” said the PM.
He said government should emulate what takes place in First World economies to maximise tax compliance such as the integration of data bases, ensuring that all commercial and other transactions were correlated with tax identification numbers.
Dlamini said raising of domestic income was linked to faster economic growth from new and expanded investment within the country.
He reminded ministers that big issues like infrastructure, labour stability, corporate tax rates and other financial incentives lure big investors.
The PM’s assertion on taxes come at a time when many Swazis were of the view that they were quite high.
Some of the country’s taxes include Pay As You Earn (PAYE), which stands at 33 per cent; Value Added Tax (VAT) at 14 per cent and Corporate Tax.
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