CO-OPS TAX BACKLASH: ERS CLEARS THE AIR

MBABANE – Social media was abuzz with comments of discontent from members of the public following reports that interest earned from co-operative societies will be taxed.

This was after Eswatini Television captured ERS Senior Officer Taxpayer Education Philemon Shabangu explaining the new legislation - Income Tax (amended) Act, 2023. During the interview, the officer stated that the savings of the public which were kept with co-operative societies were now going to be taxed.  This narrative drew the scorn of the public as many expressed that they were overtaxed and there was nothing more to offer.

clarifying

In light of the backlash, ERS Acting Communications and Marketing Director Ntobeko Dlamini issued a statement clarifying what the amended legislation translated to in terms of the public’s money being taxed. Dlamini said the amended legislation has introduced tax relief to natural persons who are members of co-operative societies. This was contrary to what had earlier been said.
Leading to the amendment of the legislation, savings in co-operative societies were exempt from tax for the first E20 000, with a 10 per cent tax applying to any amount above that. However, the new amendment means that savings kept with co-operative societies were now completely exempt from paying tax on the interest earned, regardless of the interest amount received.

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