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Eswatini Revenue Service(ERS) withdraws double taxation on stokvels,Director Legal Operations Hendry Sukati says no savings tax.

Tuesday, 2nd July, 2024

MBABANE:Henry Sukati,the Eswatini Revenue Service(ERS) Director of Legal Operations has clarified that,members of the public’s savings held in banks,stokvels, Savings and Cooperatives will not be taxed.

The sentiments of the Director Legal Operations automatically withdraws statements made by Customer Service Manager Phileomon Shabangu on Monday afternoon that resulted to public outcry, the ERS Customer Service Manager had stated that, savings will now be taxed.

Speaking to this Swaziland News on Tuesday evening when interviewed by editor Zweli Martin Dlamini, the Director Legal Operations said,he was withdrawing the statement made by Shabangu, he then clarified the technicalities surrounding the new taxation.

“Taxing of savings within banks has been there since 2011 but what was happening  was that, the first twenty thousand(R20,000.00) was exempted and then, any interest about R20,000.00 was taxed at 10%.Banks have been deducting and paying 10% tax since 2011 and this include fixed deposits,call account and shares. So let me first clarify that but,with the new amendments,Cooperatives will no longer be taxed at all and this, means Cooperatives will no longer withhold tax from their members”, he said.

The ERS Director Legal Operations further mentioned that,the Income Tax Order Amendment Act also comes with the reduction of Corporate Tax from 27.5% to 25% adding that,this was meant to encourage foreign investors to establish businesses in eSwatini”, said the Director Legal Operations.

Eswatini Revenue Service(ERS) withdraws double taxation on stokvels,Director Legal Operations Hendry Sukati says no savings tax.
Eswatini Revenue Service Headquarters(pic: ERS).