Times Of Swaziland: TAXPAYER SPENDS  E118M ON  EXTERNAL TRIPS

TAXPAYER SPENDS  E118M ON  EXTERNAL TRIPS
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Timothy Simelane on 05/11/2024 09:10:00


LOBAMBA – At least E118 million has been spent on external travel in the
current financial year of government.
This is according to the performance report for the second quarter of the
Ministry of Finance.Minister of Finance Neal Rijkenberg told Members of
Parliament (MPs) yesterday that at least E375 million was a control item in the
ministry’s budget, but E118 million had been spent so far. He was responding
to a question from Kubuta MP Masiphula Mamba, who said the recurrent expenditure
is very high and that the country should obey warnings by the International
Monetary Fund.The minister then pointed to his ministry’s performance report,
stating that E118 million had been spent so far in external travels.
“I must confess that the Foreign Affairs and International Cooperation travel
was not captured correctly in the report,” he said. Meanwhile, the report
states that the variance shows that travelling is at 26 per cent at this time of
the year. “Due to the increasing number of external travels that occurred
during the last month of the 2nd quarter, reallocations from various centres
within the same head were done to facilitate the expenditure, thus the
expenditure variance is still within the provisions made on the budget,” the
report states.
Clarified
On another note, the minister clarified that the 33 per cent taxation on
commercial entities is meant to boost businesses, so they can grow their
businesses. He was responding to a question by Hhukwini MP Alec Lushaba. “When
we reduce the tax from companies, it is so that they can be able to grow quicker
and employ more people. You must understand that the company and the businessman
who owns the company are two entities. When the businessman takes away the money
from the company to spend, he pays 33 per cent.” The minister says this is
also applicable when the businessman takes the money by way of dividends.
“We are trying to incentivise that business people should not take the money
out, it means they are paying 33 per cent, but if they leave the money in the
business, they are paying 25 per cent. This should stimulate the growth of
companies in Eswatini and reduce poverty. He said the taxation is not
necessarily in a high bracket because a similar tax in the neighbouring country
is 45 per cent. He explained that the 33 per cent is applicable to those who
earn over E250 000 per year.
“This means you are taxing people that can afford to pay the tax,” he said.
The principle of tax is that you apply it to those who can afford to help those
who cannot afford it,” he said. He said government has no intentions to
increase the tax, and would also not reduce it.