GOVT REVENUE COLLECTIONS UP BY 10% IN Q1

MBABANE – In the first quarter, total government revenue collected amounted to E6.458 billion, reflecting a 10 per cent growth compared to the first quarter of the prior year.

According to the Ministry of Finance’s quarter report, this collection reflects a 24 per cent collection of the annual target. Major revenue items that performed positively in the quarter include individuals’ tax, other income tax, Southern African Customs Union (SACU), value-added tax (VAT) and fuel tax. The total revenue is composed of income taxes, taxes on goods and services, SACU and non-tax revenue, which contributed 26, 22, 51 and 1 per cent respectively.

Total income taxes are composed of company tax, individuals tax and other income taxes. Total income taxes collected amounted to E1 697 billion reflecting a 13 per cent decline compared to the previous year’s same quarter collection. This is due to a 59 per cent decline in company tax.

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The decline in company tax is due to provisional tax paid on the last day of the month which falls on a weekend which is, therefore, accounted for in July. Individuals’ tax and other income tax have shown a 5 per cent and 66 per cent increase compared to the same period last year.  Total income taxes reflect 21 per cent collection of the annual target. Meanwhile, total taxes of goods and services, including SACU receipts amounted to E4 701 billion. Taxes on goods and services are composed of VAT, fuel taxes and other minor taxes. SACU, which is the largest contributor in this item, amounted to E3 268 billion, indicating a 27 per cent increase compared to the previous year receipts.

VAT collected in the quarter amounted to E971 million which is a 2 per cent increase compared to the first quarter of 2023/24 financial year and a 21 per cent collection of the annual target. Fuel tax collected amounted to E398 million, portraying a 28 per cent increase compared to prior year same period in respect of collection of the annual target. The positive performance is due to increased demand for fuel, which is partly attributed to entertainment events that occurred in the quarter. Other minor taxes collected in the quarter amounted to E63 million compared to E58 million collected in the same period in the last fiscal year.

Total non-tax revenue collected in the quarter amounted to E53 million which is a 34 per cent increase compared to the same period last year. This performance reflects a 7 per cent collection of the annual target. This is mainly due to no dividends received in the quarter. Property income increased from E5.6 million to E7.7 million, fees and fines increased from E18.3 million to E32.9 million and Education loan repayment declined from E16.3 million to E13.2 million compared to the previous year’s collection, respectively.  Property income increased because of proceeds received from auction of redundant property made in the year, which was not made in the previous year.  Fees and fines increased due to increased performance in various items and mainly sundry fees.

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