FUEL TAX INCREASE IN APRIL

MBABANE – Another day, another tax hike.

Minister of Finance, Martin Dlamini has disclosed that apart from other policy measures which include the additional taxation of alcohol and tobacco products, the State will also increase fuel tax. Dlamini said the taxation of these products was aimed at controlling the consumption of these products. “There are also plans to increase the fuel tax rate by 20 cents from the current E3 effective April1, 2018,” said Dlamini. The minister said government policy on user fees was basically to recoup the costs of providing the goods or services.  He said government was also cautious that the increase in the user fees does not exclude sections of the populations in accessing some of the goods or services, especially those that are mandated by law such as birth certificates, identification numbers and passports.  In this regard, Dlamini said a number of user fees had not been increased for over a long period, while the cost of providing these good or services had continued to increase.

“In this sense, we are planning to review these fees to ensure that the government continues to provide the various goods or services,” said Dlamini.  The minister said the Ministry of Finance had been engaging the different line ministries during the course of 2017/18 financial year, encouraging them to investigate possibilities of revision consistent with the government policy. On the expenditure side, Dlamini said total spending for 2018/19 was estimated at E21.6 billion. He said this estimate included an amount of E2.2 billion, which was reserved for public debt payments and other statutory obligations. It should be mentioned that key stakeholders of the Swazi economy said they were strongly of the view that Finance Minister, Martin Dlamini’s E21.8 billion budget for the 2018/19 financial year represents robbing the poor to pay the rich.

Despite assurances to reduce the country’s wage bill, use loans efficiently, monitor and control unnecessary and wishful expenditure, the budget tabled by Dlamini received a barrage of criticism from the youth, private sector, legislators, non-governmental organisations (NGO’s) and academia during the post budget seminar convened at Happy Valley Hotel on Thursday. The common stance among panellists that had been invited to make presentations on behalf of their communities was to the effect that Dlamini hiked taxes to cater for government expenditure without clearly outlined strategies as to how marginalised groups such as the unemployed populace and disabled community would ultimately benefit from the increased revenue projections.

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