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PAYE TAX RELIEF ON THE CARDS - MINISTER

21/03/2017 07:29:00 BY SIBONGILE SUKATI

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MBABANE – Paying PAYE could soon be a thing of the past for some employees, come the next financial years.

This piece of good news was revealed by Minister of Finance Martin Dlamini in his responses to questions raised Members of Parliament (MPs). PAYE is the acronym for Pay As You Earn. However, when asked when this would happen during an interview, Dlamini said it would not happen in the coming financial year (2017-2018).

“I would have announced that in my speech, but for now the country has to find more ways of generating revenue,” said Dlamini. This was after Lobamba Lomdzala MP Marwick Khumalo had told the minister that for a long time, tax relief on PAYE had not been prevailed to local ordinary employees and wondered what the cause was.

Dlamini, in his response, said the last adjustment of the PAYE was done in 2013/2014.
He said most countries did this every three years, but it was important to note that implementing the adjustment resulted in revenue loss to the fiscus.
He said it was, therefore, ideal to coincide the implementation of the adjustment with implementation of revenue enhancement measures that would cushion the revenue loss. “The ministry in this regard plans to implement PAYE adjustment during the coming financial year,” said the minister.

Presently, employees who earn under E3 500 do not pay PAYE.
Meanwhile, there is going to be a new Auditor General in town. This was confirmed by Minister Dlamini, who said he had begun the process of appointing a new AG following the fact that former AG Phestecia Nxumalo’s contract had run out.

Dlamini finally admitted that Nxumalo had continued to stay in office after her term had elapsed when asked by Nkwene MP Sikhumbuzo Dlamini.
In his response, the minister acknowledged that Nxumalo stayed in office for a while after her term had ended. The minister did not elaborate what Nxumalo was doing in office but instead said he had begun the process of appointing a new AG following laid- down channels.

The AG, according to Section 207 (2) of the Constitution, shall be appointed by the King acting on the advice of the minister responsible for Finance after recommendation by the Civil Service Commission (CSC). Nxumalo’s contract elapsed on January 11, 2017, but she continued to go to work until she was ‘forced’ out of office by officers under her department, who said she should not return to work unless she had an instrument allowing her to occupy the position.
The minister further told MPs that he would require some time to investigate allegations that Nxumalo had continued to sign and backdate documents even though her term in office had ended.