Times Of Swaziland: TARIFF HIKE: CATHOLIC CHURCH CALLS FOR ASSISTANCE OF LOW-INCOME HOMES

TARIFF HIKE: CATHOLIC CHURCH CALLS FOR ASSISTANCE OF LOW-INCOME HOMES
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Kwanele Dlamini on 07/04/2025 08:53:00


MANZINI - As utility tariffs increase and a 0.5 per cent VAT set to kick in, the
Roman Catholic Church has called for cash assistance for low-income households
and laws that will protect consumers.
This is contained in the Eswatini Catholic Parliamentary Liaison Office (ECPLO)
position paper which talks about balancing economic growth and consumer
well-being following the impact of South Africa’s 0.5 per cent value-added-tax
(VAT) increase, Eswatini’s E0.40 fuel levy and rising utility tariffs.
In the ECPLO position paper, which was released by the organisation’s
Programme Coordinator Father (Fr) Sakhile Ndwandwe, the establishment says it is
committed to providing objective and thoughtful analysis of policies and
legislation that shape the lives of the nation’s people. He said they seek to
bridge the gap between government’s decision-making and consumer realities by
assessing the benefits and challenges of fiscal measures while proposing
practical solutions to improve livelihoods.
Environment
In terms of constitutional and ethical imperatives, Fr Ndwandwe said the
Constitution of the Kingdom of Eswatini (2005) affirms in Section 60(4) that:
“The State shall endeavour to facilitate an economic environment that provides
for the equitable distribution of the nation’s wealth.” In light of this, he
said they believe that economic policies such as VAT increases, fuel levies and
rising utility costs should be assessed not only for their revenue-generating
potential, but also for their fairness and impact on the most vulnerable
citizens.
Additionally, he said Pope John Paul II’s encyclical Centesimus Annus (1991),
paragraph 48, reminds them that; “the market economy must not disregard the
duty of social justice,” meaning economic policies should promote human
dignity rather than disproportionately burden the poor.
He said currently, Eswatini faces the combined impact of South Africa’s 0.5
per cent VAT increase, which, due to the two countries (Eswatini and South
Africa) economic ties, will inevitably affect local prices. Again, he touched on
 Eswatini’s E0.40 fuel levy, which was implemented on April 4, 2025 and is
expected to raise transportation and goods costs. On top of that that, he said
the country has also recorded an increase in utility tariffs, including an
electricity tariff increase of eight per cent (commendably reduced from the
initially proposed 14 per cent), as well as rising water and fuel prices.
Therefore, he said while these measures aim to sustain economic growth and
public service delivery, they also place financial strain on consumers,
particularly the poor.
In their overview of South Africa’s 0.5 per cent VAT increase, he said
Eswatini’s economy is closely linked to that of South Africa, meaning that any
changes in the policies of the neighbouring country directly affect local
markets.
Therefore, he said the recent increase in VAT from 15 per cent to 15.5 per cent
will make imported goods and services more expensive in Eswatini. He added that
since many local businesses rely on South African suppliers, these costs will
likely be passed on to consumers.
Regarding Eswatini’s E0.40 fuel levy, he said it is intended to raise funds
for infrastructure development and public services. However, he highlighted that
it will lead to higher transport costs, affecting everything from food prices to
public transport fares.
Consumers
Furthermore, in terms of the rising utility costs, he said initially,
electricity tariffs were supposed to increase by 14 per cent, but government
commendably reduced it to eight per cent, demonstrating its commitment to
protecting consumers. He said the increase in water tariffs and fuel prices add
further financial pressure, making it harder for low-income households to meet
basic needs.
He said the question will be  how these fiscal measures impact Eswatini’s
consumers (potential benefits). He said the additional revenue from VAT and the
fuel levy will support infrastructure projects, healthcare and education,
benefitting communities in the long run. He said the United Nations
International Covenant on Economic, Social and Cultural Rights (ICESCR), Article
11, states that; “everyone has the right to an adequate standard of living,
including food, clothing and housing.” Therefore, he said government spending
on infrastructure and social services aligns with this commitment.
“The country can have a stronger economic stability through these fiscal
measures. A stable revenue base can help government maintain essential services
and reduce reliance on external funding.” Fr Ndwandwe said.
He added that the Eswatini Constitution, Section 58(1), mandates that; “the
State shall take necessary steps to ensure the progressive realisation of
economic rights,” meaning that tax policies should balance growth with
equitable social investment.
He also highlighted that the decision to lower the electricity tariff increase
from 14 per cent to eight per cent demonstrates government’s awareness of
consumer struggles and its willingness to adjust policies for affordability.
On the same note, he said VAT exemption on pharmaceuticals safeguards healthcare
accessibility and affordability. He said government’s policy to zero-rate VAT
on medicines and pharmaceutical supplies demonstrates a commendable commitment
to public health and economic equity.
This exemption applies to supplies made to accredited medical institutions, the
government Central Medical Stores and individuals presenting valid
prescriptions.
“By eliminating VAT on these essential medical products, government
effectively mitigates potential cost escalations in the healthcare sector,
thereby ensuring sustained affordability and accessibility of critical
treatments for all citizens, particularly those in vulnerable economic
conditions,” Fr Ndwandwe added.
In terms of the law, he said this fiscal measure aligns with Section 60(4) of
the Constitution of the Kingdom of Eswatini (2005), which mandates the State to
take necessary measures to ensure the provision of basic healthcare services to
all citizens. Additionally, he said it resonates with the principles enshrined
in Article 12 of the International Covenant on Economic, Social and Cultural
Rights (ICESCR), which obligates State parties to recognise the right of
everyone to the highest attainable standard of health and to take steps to
ensure access to essential medicines.
Again, he said the World Health Organisation’s Constitution (1946) declares
that; “the highest attainable standard of health is one of the fundamental
rights of every human being.” In that regard, he said keeping medical supplies
affordable upholds this principle.
Furthermore, he said this policy is consistent with the social teachings of the
Catholic Church, particularly Pope John Paul II’s encyclical Sollicitudo Rei
Socialis (1987), which emphasises the moral obligation of governments to protect
and promote the well-being of the most vulnerable, including through equitable
healthcare policies. The Eswatini Government’s approach in this regard is
commendable, as it reinforces both national priorities and international
commitments to healthcare accessibility and social justice.
Promote
He added that emaSwati should appreciate the zero-rated supplies. He said this
is because zero-rated goods and services are taxable, but at a zero per cent
rate, allowing suppliers to claim input tax credits. According to the Eswatini
Revenue Service (ERS), some of the zero-rated items include fuel and educational
items, among others.
“Fuel is taxed at a zero per cent rate, ensuring affordability and stability
in transportation and energy costs. Exercise books and textbooks approved by the
ministry responsible for education for use in qualified educational institutions
are zero-rated, promoting education accessibility for all students,” he said.
This provision, according to ECPLO, plays a crucial role in easing the financial
burden on vulnerable households.
Further extending zero-rating to include all baking ingredients, eggs and dairy
products could significantly alleviate the cost of living for low-income
families.
These staple foods form the foundation of daily nutrition, and ensuring their
affordability would enhance food security while supporting household
sustainability.
In terms of challenges, Fr Ndwandwe said the above increase contributes to the
high cost of living. He said the combination of VAT, fuel levy and utility price
increases will raise the cost of food, transport and essential goods, making
everyday life more expensive. He said the Catholic social teaching document
Mater et Magistra (1961), paragraph 45, emphasises that; “the economy must
serve the human person, not the other way around.” In that regard, he said
economic policies should ensure that basic goods remain accessible to all.
“The looming transport cost increases will affect rural communities. Public
transport fares may increase, making it harder for people to travel to work,
school and healthcare facilities.
The Eswatini Constitution, Section 28, affirms the right to freedom of movement,
which could be indirectly affected by unaffordable transport costs,” Fr
Ndwandwe said.
Thereafter, he said they have come up with practical recommendations to ease the
burden on consumers.
He said one of them is to expand consumer relief programmes by introducing
targeted vouchers or cash assistance for low-income households to help with
rising electricity and water bills. He said the ICESCR, Article 9, calls for;
“the right of everyone to social security, including social insurance,” thus
introducing relief programmes aligns with this international standard.
Businesses
He added that government should strengthen consumer protection and price
monitoring. This, he said, can be achieved by enhancing consumer protection laws
to ensure businesses do not unfairly increase prices beyond justifiable costs.
He said the Pontifical Council for Justice and Peace’s Compendium of the
Social Doctrine of the Church, paragraph 349, states that “governments must
ensure economic structures are fair and transparent, protecting consumers from
exploitation.”
Moreover, he said they recommend that government should promote energy and
resource efficiency. He said it should encourage alternative energy sources,
such as solar power, through tax incentives for businesses and households that
invest in them. He said the ‘Laudato Si’ (2015), paragraph 165, encourages
governments to promote renewable energy as a means of economic and environmental
justice.