MEMBERS of Parliament (MPs) have accused the Eswatini Revenue Service (ERS) of choking businesses because of the strict enforcement of rules governing the issuing of tax clearance certificates (TCCs).
Some legislators argued that the rigid requirements were making it difficult for companies to operate, warning that the current approach risked pushing already struggling businesses over the edge.
Mhlume MP Sifiso Magagula said there were complaints that those collecting taxes were increasing prices willingly to frustrate Emaswati. He said locals were complaining about tax clearance certificates because many business dealings depended on them.
Magagula said when businesses needed to pay suppliers outside the country, they were required to produce tax clearance certificates, which were not easily accessible.
“They get tax clearance certificates today, only to be denied the certificate the following day. Let us not kill the entrepreneurs because they are willing to pay tax. The process is now holding them by the neck,” he said.
READ MORE | Payroll glitch forces politicians to repay back-pay taxes
Sigwe MP David Ngcamphalala said the country might eventually fail to collect any tax. He said there would be no locals operating businesses as many had already closed down, leaving foreigners as the main operators. He said ERS was charging businesses penalties on a daily basis. He suggested that the law be amended so that businesses are not penalised excessively.
“Why would you collect tax from an elderly person for selling a cow?” he asked.
Mtfongwaneni MP Nathi Hlophe questioned whether government was contributing to locals shying away from business due to ERS policies. He said many businesses were now run by foreigners, who did not even use banks. He added that foreigners were now selling even small items such as ice blocks, suggesting that there might be something wrong with government systems, which was leading to this.
Hhukwini MP Alec Lushaba said ERS had previously complained about not collecting enough taxes, prompting government to allocate it funds. However, he said even before the entity’s new systems became operational, locals were now being required to produce tax clearance certificates even for small businesses.
“ERS should consult government so that locals are paid on time before enforcing the law on tax clearance certificates,” he said.
