ROYAL VILLAS, SIBANE HOTEL RATES EXEMPTION DENIED

MBABANE – A request by the Royal Villas and Sibane Hotel to be exempted from paying rates due to the prevailing COVID-19, which has hit the tourism sector, has been rejected.

The establishments are among the many tourist attractions which are situated under the Ezulwini Municipal Council, which before COVID-19 hit the world, was a hub for tourists in the country. As a result, many of the tourism facilities have not been able to pay their rates for the 2020/2021 financial year. This was confirmed by the Chief Executive Officer (CEO) of the Ezulwini Municipality Vusumutiwendvodza Matsebula.
He said annually, the tourism and hospitality establishments paid about E7 million in rates to the municipality.

Response

In response to a questionnaire sent to him, Matsebula said according to Section 7 of the Rating Act of 1995, the Royal Villas and Sibane Hotel were not exempted from paying rates. The Royal Villas are run by Tibiyo TakaNgwane while Sibane Hotel is privately-owned. “Currently, they had written to request for an exemption due to the current challenge facing the tourism sector, their request could not be approved,” said Matsebula.
According to Section 7 of the Rating Act there are some places which  shall be exempt from the payment of rates, namely immovable property used exclusively throughout the year for purposes of  public worship; a school, college or university, including its boarding establishment or recreation ground or the like provided for the accommodation, use or enjoyment of students or scholars attending such school, college or university. The section further exempts any bona fide registered charitable institution maintained by any company, society or other association of persons; a public library, museum or art gallery; a hospital, clinic, or health centre; and cemeteries. 

 Subsection 8 further states that a place which is used for any other purpose, approved by the minister, after consultation with the local authority, as being for the public benefit. Section 2 states that other properties which shall also be exempt from the payment of rates include properties registered in the name of the Ingwenyama and the Indlovukazi; ‘Properties registered in the name of the Ingwenyama in trust for the Swazi Nation,’ are also exempted from paying tax according to Section 7 (2b). Subsection 3 further states that no exemption from rates shall be granted in respect of any immovable property by virtue of Subsection (1) — ‘if the use of such property has as one of its objects the private pecuniary profit of any person, whether as a shareholder in a company or otherwise.’ It further states that  if any rent, other than a nominal rent, is paid to the owner, lessee or occupier of any such property; or  where such property is used for the residential accommodation of members of the staff or staff of any institution referred to therein.

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