SRA DEMANDS E40M FROM NGWANE MILLS

MBABANE – The Swaziland Revenue Authority (SRA) is demanding over E40 million from Ngwane Mills (Proprietary) Limited.

The exact amount which SRA wants Ngwane Mills to pay is E40 109 557. 26 and is in respect of customs clearance. The breakdown of the money that is being demanded by SRA is as follows; payment of Valued Added Tax (VAT) -E10 594 977.39, payment of penalty- E10 549 977.39, payment of E18 919 602.48 in lieu of forfeiture of the goods in respect of which the non – declaration was allegedly committed.

In a letter dated July 3, 2017, SRA Commissioner General Dumisani Masilela wrote to the company and stated that if the amount of E40 109 557. 26 was not paid by July 21, he would invoke Section 114 of the Customs and Excise Act or any other means to enforce payment of this amount without any further reference to the management.

The letter by the commissioner general has resulted in Ngwane Mills approaching the High Court.
In its application the company wants the court to issue an order that pending the outcome of the review proceedings, SRA be interdicted and restrained from taking any steps to enforce payment of the sum of E40 million, which was in respect of the customs post clearance audit undertaken by the authority for the period of April 2012 to March 2014. The company also wants SRA to show cause why its decision should not be reviewed and set aside.

Through its lawyer Kenneth Motsa, from Robison Bertram, the company stated that the goods which were now the subject matter were brought into Swaziland by Afgri, which was therefore liable for VAT on the importation of goods into the country.

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