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ZULWINI - The Minister of Finance, Neal Rijkenberg, yesterday said he was informed by the Eswatini Revenue Services (ERS) that more than 2 600 businesses and individuals had registered under the ‘tax deal’ as at Thursday, July 21.

7ax deal is the (swatini 5evenue 6ervice (56 7ax 'ebt 5elief 3ro gramme meant to assist taxpayers who find themselves with debts that are very difficult to repay.

7he minister said the registration came at a time when tax arrears had increase by an average of . per cent per year in the country.He said the increase in tax arrears had been a con cern for the government with efforts being made to contain their increase from ( . billion in to ( . billion as of )ebruary .

“, am sure all of you might Nnow by now that on the rd of May we tooN a decision in line with 7ax /aws to waive interest and penalties for those businesses that commit to and eventually liTuidate their principal debt ´ he said.

5iMNenberg further encouraged busi nesses to taNe advantage of this oppor tunity to register for this deal before the deadline of August .

7he )ederation of (swatini %usiness &ommunity )(6%(& and (swatini 5evenue 6ervice (56 had signed a memorandum of understating Mo8 towards ensuring tax compliance of He said a maMority of businesses had experienced a decline in performance due to the debts relating to tax as they can be µeasily¶ ignored.

'lamini said lacN of tax Nnowledge was the contributing factor to high tax debt.

“, was shocNed when , discovered the businesses locally.

(56 &ommissioner *eneral %right well 1Nambule said the Mo8 would assist local businesses with tax debt to pay at an agreed rate.

He said businesses that came forward before 2ctober would had their tax debts explained and a schedule of payment created.

“%usinesses owing tax would be subMected to pay the amount they owe but in different conditions and periods depending on the debt ´ he said. 7he commissioner emphasised that those that come forward to declare their tax debt will receive amnesty and a grace period to pay.

Movement

1Nambule outlined that this would reduce cost for some business and increase monetary movement as it aimed to decrease their debts.

)(6%(& 3resident 7um 'upont added that the Mo8 was a necessity to the business sector as tax compliance is one of the issues affecting business locally. He said many businesses had closed due to high tax debts and some directors enter in to a state of shocN upon discovering how much they owed.

“Many directors had died after find ing out ho much they owe as tax and this is because they do not properly understand the system ´ he said.

7he president urged businesses that were non members of the organisation to also come forward as they are in clusive to the partnership. how much , owed in taxes when , went to clear my debt the money accumulated because it dates bacN to two years ago ´ he said.

7he &(2 added that the tax amend ments should favour businesses and individuals as well and he also urged businesses to be vigilant with tax.