Home | News | PARASTATALS FAILING TO REMIT PAYE - FINANCE MINISTER

PARASTATALS FAILING TO REMIT PAYE - FINANCE MINISTER

Font size: Decrease font Enlarge font

MBABANE – An undisclosed number of public enterprises are failing to remit Pay As You Earn (PAYE) to the Eswatini Revenue Authority (SRA).
This was revealed by the Minister of Finance, Neal Rijkenberg.


He informed senators that there has been continuous increase in the number of arrears mostly being PAYE by public enterprises, according to the Public Enterprise Unit.


“The unit had engaged on an exercise of collecting stock of arrears for all the Catergory A Public Enterprises and the amounts continue to increase reflecting that there is a continuous fiscal challenge faced by the entities therefore they are unable to meet their financial obligation,” he said.


Affected


Rijkenberg said not all the parastatals were affected, however, he did not give the names of the parastatals in arrears.
There are over 30 government parastatals.    


He informed the senators that government had raked in E4.7 billion between April and June, 2019 which was an increase of 28 per cent when compared to the same period in 2018/19. Rijkenberg said the increase was due to over-performance by Value Added Tax (VAT), company taxes and other income taxes.
“VAT contributed about 29 per cent, company taxes contributed about 39 per cent and other income taxes accounted for about 53 per cent,” Rijkenberg clarified.


He stated in his report that E1.7 billion collected from income taxes showed a 38 per cent hike when compared to the same period in the last financial year (2018/19).


Income taxes comprise company taxes, individual taxes (Pay As You Earn- PAYE), other income taxes and graded tax.
It was stated that PAYE collected was E862 million compared to E754 million which was paid in the same period during the last fiscal year. This represented an increase of 14 per cent.


The ministry stated that company taxes which were accumulated stood at E614 million which was a 39 per cent collection of the annual budget.
“The first quarter of 2019/20 reflects a higher collection made in the same period of 2018/19 by 57 per cent. The higher performance is due to some payments being received from taxpayers who made payments in other periods last year.


Other income tax collected amounted to E273 million which was a 132 per cent above collection of the first quarter in the past financial year.
 It was also pointed out that graded tax collection was at E238 000 indicating a three per cent decrease in collection of the annual budget.
“This was because there were no adjustments,” it was explained.


Coffers


Transfer duty which went into coffers of the State was E9.8 million which was 17 per cent above collection from 2018/19 and 25 per cent collection of the annual budget.


“The over-performance is due to an improvement in the performance of the property industry,” reads the report in part.
Taxes on goods and services amounted to E2.8 billion. Meanwhile, VAT which was hiked from 14 per cent to 15 per cent improved by 65 per cent to E1 billion from E613 million.


 The collection of lotteries and gaming revenue was E3.6 million while road toll amounted to E8.4 million. It was further reported that licences and other taxes were E18.3 million which was an increase of nine per cent from last year.


On fuel tax, government said it made E270 million and from motor levy they collected E1.7 million which was 18 per cent year to date collection from the annual budget.

Comments (0 posted):

Post your comment comment

Please enter the code you see in the image: