By Zweli Martin Dlamini

LOBAMBA: Businessman Neal Rijikernberg, the Minister of Finance reduced corporate tax for ‘his companies’ and increased Pay as You Earn(PAYE) for the financially struggling workers.

The powerful capitalist, who is close to King Mswati is allegedly linked to various companies that include Montigny Investments, Bulembu Ministries, Mobilize(PTY) LTD, Swazi Poles and Usuthu Development Corporation among others.

Other companies allegedly linked to the Minister include Somacel Swaziland(PTY) LTD and Armagh Investments.

Speaking in Parliament when delivering a budget speech, the Minister announced the reduction of corporate tax from 27.5% to 25%, he went on to increase Pay as You Earn(PAYE) from 33% to 36%.

“We are reducing corporate tax from 27.5 percent to 25 percent. This is in line with the rest of the world reducing tax rates and aims to assist companies to grow quicker and helps to solve our unemployment problem. To balance the loss in the reduction in corporate tax the bill also includes the review of the initial allowances, penalties on late submissions on PAYE, capping of losses carried forward, and the increase of the rate of withholding tax on interest for non-residents from 10 percent to 15 percent,” said the Minister.

The increase in the PAYE means governemnt will continue to grab more money from workers and the poor while the reduction in corporate tax comes as a tax relief for capitalists including Neal Rijikernberg’s companies.

Reached for comments, Bheki Mamba, the President of the Trade Union Congress of Swaziland(TUCOSWA)said it was a conflict of interest for the Finance Minister, a capitalist to reduce corporate tax and then increase Pay as You Earn(PAYE).

”This comes at the time when most companies including government are reluctant to increase salaries for workers. This government continues to grab more money from the pockets of the workers to finance the lavish lifestyle of the King and the royal family”, said the TUCOSWA President.