By Musa Mdluli

MATSAPHA:The Eswatini Revenue Service(ERS) will collect about R100million annual tax from textile workers subsequent to the announcement of new wages by Labour and Social Security Minister Phila Buthelezi.

It has been disclosed that,the new wages announced by the Labour and Social Security Minister were actually implemented in May 2024, resulting to a majority of textile workers earning above the Pay as You Earn(PAYE) threshold of three thousand, four hundred and sixteen Rands, sixty-seven cents(R3,416.67) per-month including overtime.

With about thirty five thousand(35000) textile workers in the country who earn over three thousand five hundred Rands(R3,500.00) including overtime, Government is highly expected to collect over R100million annually, from the workers’ pockets.

But when the taxation started, some textile workers had suspicions that, their employers were collecting or deducting the money without remitting same to the Revenue Service and as a result, workers at Fashion International protested against the taxation.

It is alleged that, despite the salary increment announced by Minister Buthelezi, the textile workers will only receive the increment on paper as the money will go back to Government through the Pay as You Earn taxation.

In fact, the introduction of the PAYE tax in the textile industry means, workers will no longer benefit from overtime payments as reaching the R3,416.67 threshold will automatically attract the taxation and drastically reduce their wages.

But Ntobeko Dlamini,the Eswatini Revenue Service Director-Communications, when responding to this Swaziland News clarified that, to the best of her knowledge, textile companies “are lawfully collecting tax” and remitting same to the revenue service.

The Director subsequently dismissed the allegations suggesting that, some textile companies might be collecting tax unlawfully and, without remitting the money to the Revenue Service adding that, their records “indicates that, the collected tax is remitted” by the textile companies.

“Our records indicates that textile organizations have been diligently remitting PAYE deductions to the ERS, ensuring compliance with the country’s tax laws.These deductions are calculated based on the employees total earnings, and only individuals earning above the threshold are liable to PAYE. The ERS remains committed to fostering transparency and promoting understanding of the tax system. We encourage employees with concerns or questions about PAYE deductions to contact our offices directly for assistance”, said the ERS Director Marketing and Communications.

Marcia Hillary, a Manager at Fashion International avoided questions regarding the subject matter.

Wander Mkhonza is the Secretary General(SG) of the Amalgamated Trade Union Congress of Swaziland(ATUSWA), he told this Swaziland News that, the confusion regarding the taxation has resulted to some textile workers protesting at Fashion International.

“While we are alive to the fact that, tax must be paid, there’s no clear formula within the textile companies regarding the threshold.I would make an example; it’s not fair to tax an employee just because he/she reached the threshold by working an overtime. We are currently engaging on this matter because employees are not happy at all”, said the ATUSWA Secretary General.

Eswatini has about 70% of the population living below the poverty line, this includes civil servants, textile workers and other employees within the various industries and their plight has been triggered or worsened by the ever escalating costs of basic commodities.

Government is highly expected to increase water and electricity tariffs, a decision that might worsen the poverty situation as more citizens struggle to afford a decent meal.