Times Of Swaziland: MPS WANT ANSWERS ON SACU RECEIPTS DROP

MPS WANT ANSWERS ON SACU RECEIPTS DROP
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BY KHULILE THWALA on 30/11/2021 09:10:00


MBABANE – MPs have decried the lack of strategy or plan over the proposed
decrease in SACU receipts in the Mid-Term Budget Review Report.
This was during a debate on the Mid-term Budget Review Report 2021/22 yesterday
by the Members of Parliament (MPs). Kukhanyeni MP Malavi Sihlongonyane was the
first to raise that the mid-term budget was not clarifying what the way forward
was since SACU receipts had decreased. SACU is the South African Customs Union.
Siphocosini MP Mduduzi Matsebula also highlighted how page five of the budget
review detailed a decrease in SACU receipts, however, he questioned why there
was a decrease yet there were measures in place to increase the receipts and
requested the Minister of Finance, Neal Rijkenberg, to elaborate on what the
decline could be attributed to.
Questioned
Kubuta MP, Musa Mabuza questioned that as the mid-term budget review had
highlighted an increase in the wage bill despite the hiring freeze, when would
government start the  implementation of the Early Voluntary Retirement Scheme
(EVERS).  Ndzingeni MP Lutfo Dlamini first spoke in jest how the Finance
minister was becoming a strong politician based on the way he had compiled the
budget review. “The minister has written the report in such a way that it will
be difficult to question,” said the MP.
However, the MP questioned the fuel tax collection on page seven, stating that
it was concerning that a levy was passed for a fuel reserve yet there was money
still being collected even now. He questioned what it was for because the
Minister of Natural Resources and Energy, Peter Bhembe, said he had collected
enough in the amount of E54 million and even went to the extent of stating  that
funding from outside had been sourced. The MP further questioned when the budget
report would include looking into the business activity in the 59
constituencies. He wondered if the review would include how services were
uplifting the people and whether the budget would include the vibrancy of
businesses in constituencies.
Dlamini further questioned the non-review of the 9pm curfew, making an example
of convenience stores, which could sell to customers through windows if the
transmission of the virus was in fact the biggest concern. He said this was
because most filling stations were closed early yet they provided an essential
service and the early closure of filling stations was a major inconvenience to
the country’s citizenry.
Lobamba Lomdzala MP Marwick Khumalo wanted to know whether the increase in tax
collection was still the only way to ensure economic recovery. The MP questioned
whether the finance ministry could avail other economic recovery strategies
despite this one. He also raised a concern with regards to the EVERS issue,
questioning how many civil servants would need to be retrenched in order for the
situation to normalise. He highlighted that since government had cash-flow
problems and EVERS was yet to be effected what would government do and what
would happen going forward.
The MP also questioned when the measures applied in order to increase SACU
receipts would be effective as the report stated that there was a decrease in
receipts.  He wondered when the ‘Dubais’ resolution would play a role as it
was agreed in Parliament therefore there was a need for the budget to point out
when the measures implemented previously to reduce SACU receipts would be in
effect. Mhlangatane MP Madala Mhlanga submitted that the decrease in fuel taxes
could probably be attributed to the restriction imposed by the curfew because
these filling stations closed early and opened late. Dvokodvweni MP Mduduzi
Magagula wondered whether government had actually saved from the hiring freeze
and decried the lack of reviewing of the curfew or mentioning thereof in the
report, stating that it was hurting the pockets of business people.
budget
Nkhanyeti Ngwenya, Hhukwini MP, pointed out that page 35 of the budget review
was not elaborate on the personnel costs despite the instituted hiring freeze.
He questioned how much revenue was saved after the hiring freeze was effected.
During his submission, Kwaluseni MP Sibusiso Mabhanisi Dlamini made a suggestion
with regards to EVERS, questioning why government was not making it voluntary
for civil servants to go home. The minister of  Finance responded to some of the
questions raised during the debate, however, was then requested to answer the
other questions in writing.
The minister submitted that shortfalls could be closed by spending less,
increasing SACU revenue and taxes. However, he stated that to increase  tax like
other countries was the aim, however, the time for that was not right now. He
said before this was done the tax base had to be broadened. Rijkenberg also
stated that the plan was to reduce expenditure, because currently, tax
collection was at E12 billion yet the expenditure was at E26 billion. In terms
of the decrease in SACU receipts the minister submitted that the measures
previously implemented to ensure that the receipts decrease would only affect
the country in two years time. This is to state that the effects of the measures
previously taken would only be seen then.
According to the minister, the measures that were put in place to ensure SACU
receipts increased would have a slight impact next year, however the larger
impact will only be seen the following year. He further submitted that the
decrease could also be attributed to the initial full lockdown. He mentioned
that the full lockdown was quite aggressive and had lowered the SACU pool due to
the decrease in trade. However, he mentioned that the lockdowns were now
implemented smarter. In response to the questions on the impact of the hiring
freeze, the minister submitted that they had seen a decrease of about 2 000
civil servants for the past two years which reduced the number of civil servants
from about 46 000 to 44 000, which wouldn’t have been possible in previous
years.