Gold: Bonuses increase PAYE by 6%

MBABANE – Government revenue reflected a yearon-year increase of 18.0 per cent in the third quarter of 2023.

This growth was supported by increases in major revenue categories such as Southern African Customs Union (SACU) receipts, Corporate Income Tax (CIT), pay-as-you-earn (PAYE) as well as fuel tax.

The 6 per cent marginal increase in individual tax (PAYE) was attributed to tax on end-of-year bonuses offered by corporate companies as well as gratuity for contracted employees upon ending of contracts.

BULLETIN

This is according to the quarterly economic bulletin for the 4th quarter of 2023 (October – December 2023) issued by the Ministry of Economic Planning and Development.

Additionally, fuel tax had a stellar growth of 68 per cent driven by the increase in fuel and energy imports.

Value-added tax (VAT) decreased by 15 per cent reflecting that there was less economic activity y-o-y.

Graded tax was scrapped in the last quarter of the calendar year.

CIT depicted a growth of 10 per cent at the back of an increase in provisional payments from the ‘financial sector’, ‘manufacturing sector’, as well as the ‘wholesale and retail sector’.

It is worth noting that in its annual report, the Eswatini Communications Commission (ESCCOM) reported that the total tax revenue collected in the Eswatini economy by Eswatini Revenue Service (ERS) increased from E10 786 960 753 collected in 2021/22 to E12 037 537 465 in 2022/23, showing an increase of 12 per cent.

In line with the improved Southern Africa Customs Union (SACU) share, this revenue source reflected a 50 per cent increase compared to the same period in 2022.

Meanwhile, in line with government operations, expenditures reflected a 15 per cent increase relative to the same period in FY 2022/23.

COMPENSATION

The increase reflected higher spending on the compensation of employees (41.3 per cent) in line with new hiring, awarding cost of living adjustment of 4.0 per cent and increased allowances paid in the year.

Other expenses also reflected growth in the period and these include transfers (25.4 per cent), capital expenditure (19.2 per cent) and goods and services (14 per cent).

These increases reflected higher implementation in government’s capital programme as well as adjustments relating to previous budget shortfall.

‘‘The 6 per cent marginal increase in individual tax (PAYE) was attributed to tax on end of year bonuses offered by corporate companies as well as gratuity for contracted employees upon ending of contracts.’’