Income Tax Amendment Bill passed, no 36% PAYE

Eswatini Daily News

By Ntombi Mhlongo

EmaSwati who earn above E250 000 annually can breathe a sigh of relief as the proposal to review the Pay As You Earn (PAYE) tax from 33% to 36% has been thrown out.

This came out on Monday at the House of Assembly when the Report of the Finance Portfolio on the Bill was tabled and adopted by Members of Parliament.

Early this year, there was an outcry when the Bill was tabled by Minister of Finance Neal Rikenberg and it reflected that it sought to revise the schedule of the PAYE rate to increase the highest tax rate from 33% to 36%. The report that was passed reflects that some stakeholders recommended that the PAYE should rather remain at 33% or be reduced to 30%.

Noting the concerns of the stakeholders and the explanation thereto, the Committee proposed that the status quo should be maintained at 33%.

The Income Tax (Amendment) Bill, Bill No. 7 of 2022, sought to amend the Income Tax Order 1975 to provide for inter-alia the small taxpayer regime taxation or presumptive tax, the review of tax incentives, the introduction of non-discriminatory tax incentives, the taxation of residents on worldwide income, subject to relief from juridical double taxation and strengthening of anti-avoidance provisions.

The Bill was tabled on March 24, 2022. It sought to broaden the tax base and protect the tax base by minimising the erosion of the tax base.

It proposed several revenue enhancement measures aimed at generating additional revenue for the Government. These revenue enhancement measures are in the form of the introduction of new forms of taxes and other measures are in the form of strengthening certain administrative provisions that need to be improved.