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FORGET PROPOSED PAYE HIKE TO 36% - MP MARWICK

24/02/2022 09:13:00 Ntombi Mhlongo

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LOBAMBA - ‘‘Forget it!’’

This was a bold statement made by Lobamba Lomdzala Member of Parliament Marwick Khumalo in reaction to the proposed plan by government to increase the pay-as-you-earn (PAYE) tax by up to 36 per cent. This was during the debate of the budget speech in the House of Assembly yesterday where Khumalo, together with most MPs strongly, stated that they rejected the proposed taxation planed. Infact, the MPs said the current 33 per cent should be reduced. During his debate, MP Khumalo first made it known that he was shocked when the Minister of Finance, Neal Rijkenberg, announced the increase in tax when he presented the budget speech last week. Khumalo said he expected the minister to announce a reduction of the tax. He said it was surprising that the minister said the increase was in line with the standards in neighbouring countries. Such, according to Khumalo, was far from the truth.

Reflected

Instead, he said his research reflected that in Lesotho, the tax stood at 30 per cent while in Mozambique it was 32 per cent. He said according to his analysis, the increase in Eswatini would be of about 9.1 per cent and that the justification forwarded by the minister was neither here nor there. Khumalo said the minister himself acknowledged that there were financial challenges, which meant that people were having it tough. He wondered how the people were then expected to afford the tax. “I want to state that this plan won’t make it. The minister will not get the support. He needs to reduce the tax so that the people can have money to spend. For years we have suffered from indirect taxation of 80 per cent on fuel. We are bleeding. Now they are coming for us with direct taxation. Honourable minister, forget it,” Khumalo submitted.

He said it was clear that the minister was all about collecting revenue and on his mission he did so without considering those who would be affected. Also speaking on the taxation was KuMethula MP Derrick Masuku, who said since the budget speech was delivered last week, he had been hurting. The MP said the proposed increase of up to 36 per cent gave him sleepless nights as the people were already suffering because of the current 33 per cent. “What is an issue is the fact that the tax is being increased while it is not the case when it comes to salaries. I am also concerned because emaSwati are taxed while in employment and then the little they receive as gratuity when they retire is also taxed. So it means they will die poor,” Masuku said.

Challenges

He said he expected that since the people had already suffered due to the challenges brought about by the COVID-19 pandemic, their lives would be made better by reducing taxes.
Manzini North MP Macford Sibandze also criticised the proposed plan to increase the tax. He said perhaps the minister was just testing the waters and that since he had heard that there was an outcry, he would drop the plan. Sibandze said since the issue of tax affected everyone, there was danger that it would unite the enemies of government. He said government must be careful not to create an environment where the people would fight among themselves. “Since he has heard the outcry, I trust that he will heed the warning shots,” said Sibandze.
Lugongolweni MP Enos Magongo said he heard that for now the taxation increase was just a proposed plan. He said his proposal was that for now the plan should be shelved.

Meanwhile, Gege MP Musa Kunene said it was good that the proposed plan to increase taxes had come when the country was preparing for the national dialogue. He said the issue of taxation now needed to be debated on a platform such as a dialogue. Kukhanyeni MP Malavi Sihlongonyane also supported his colleagues, saying government should reconsider the decision to increase the tax. He concurred with some of his colleagues who said the proposed plan should be thrown out.

Elections

Meanwhile, Motshane MP Robert Magongo had his colleagues in stitches when he said the minister should have introduced the new taxes way back instead of now when the next elections were around the corner. “Ngeke ucale wente loku nyalo sesiya elukhetfweni. Bangasibulala labantfu. Awusicolele nje,” said Magongo. He submitted that the minister should just reduce the tax from the current 33 per cent. Nkilongo MP Timothy Myeni also advised the minister to just throw the taxation plan out of the window. “Lo-36 per cent ungamletsi la,” said Myeni.

During the same debate, some of the MPs called for government to look into the issue of probase roads versus tarred ones. MP Khumalo said some people had observed that the probase was costing the country unnecessarily and said it would be wise to do a comparison so that government could make a wise decision. He also advised government not to allow prejudice.
Khumalo said in the country, the civil service was full of people who graduated in the local tertiary institutions and were aware that now and again there were strikes and protests by students. He said events such as the Black Wednesday were known and commemorated by the students and that there was nothing wrong with that.

Warning

He was reacting to a warning issued by government that students who participated in strikes could lose their scholarships. Khumalo said the students should be allowed to voice out their grievances, which in turn should be solved in a proper manner. On another note, following the passing on of Minister of Natural Resources and Energy, Peter Bhembe, on Monday, the MPs observed a moment of silence to mourn his death yesterday. Speaker Petros Mavimbela sent his condolences to those who were close to Bhembe, Their Majesties and the nation at large, saying the minister was a hardworking man. Mavimbela informed MPs that information on preparations and dates for the funeral of the minister would be communicated in due course. Worth noting was that the Order Paper had some reports which were supposed to be tabled by the minister. At some point, there was confusion as it appeared that none of the Cabinet ministers had been assigned to take over the reins on behalf of the now deceased minister.

Reports

One of the reports that had to be tabled was the Eswatini Electricity Company’s Annual Report, which was first in the Order Paper. Seeing that there was no minister to do the honours, Mavimbela advised that the item be skipped and the business of the day should continue. However, MP Khumalo stood up on a point of order and submitted that it made no sense not to have the report tabled as the MPs already had it in their possession. In the end, the Speaker called on the Prime Minister, Cleopas Sipho Dlamini, to select a minister to do the honours.
With yesterday’s sitting’s focus on the budget speech, not all the MPs were able to debate. About 17 of them ended up not being given the chance and the Speaker assured that they will get their chance today.