TAX HIKE FOR ALCOHOL, CIGARETTE, FOREIGN VEHICLES PROPOSED

MBABANE – It’s time to pay for your sins. This follows the tabling of the Alcohol and Tobacco Levy Bill, 2019 where government is seeking an increase of seven per cent tax for alcoholic beverages and manufactured tobacco that will be imported into Eswatini.

The Bill was tabled in Parliament by the Minister of Finance, Neal Rijkenberg.
According to the Bill, the alcoholic beverages will include all kinds other than traditional beer, and tobacco in the form of cigars, cheroots, cigarillos, cigarettes, pipe tobacco and snuff.

Goods manufactured post production other than for export which are manufactured in Eswatini, will draw a tax of two per cent which will also be the same rate which will apply to tobacco products.

Debated

However, the Bill, which is yet to be debated for adoption in Parliament, states that the minister may make regulations for the better carrying into effect of the provisions and the minister may make regulations specifying the rates of tax payable under the Act.

Section 5 of the Bill states that in the case of an import of goods, this shall be paid by the importer, while in the case of the alcohol and tobacco manufactured in Eswatini the tax shall be payable to the commissioner general.

According to the Bill, traditional beer means the alcoholic beverage commonly known as tjwala and solely brewed from sorghum or maize or a mixture or both, including water.

Buganu and injemane have also been defined as traditional beer or any other alcoholic beverage of a proprietary nature declared as an African beer in terms of the law relating to liquor licences. However, it is not yet known what the exact cost will be for alcohol and tobacco.


            

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