ERS offers debtors 20% down payment
EZULWINI- Taxpayers with outstanding tax liabilities now have a full year to settle their debt with a down payment of 20 per cent.
The Eswatini Revenue Service (ERS), has removed the interest charged when settling your Principal tax debt. This was mentioned by ERS communications department in an interview yesterday. ERS launched a Tax Debt Relief Programme meant to assist taxpayers who find themselves with debts that are very difficult to repay. The programme now includes the interest and penalty tax. ERS said taxpayers with outstanding tax liabilities will have to come forward and declare, to begin the process of payment.
“Once the declaration process is complete, they will be given a period of twelve months to settle the debts with penalties and interest removed,” said ERS. They also mentioned that those who paid the interest and penalties before the inception of the programme will be incorporated. ERS said the 20 per cent down payment offered to the tax payers, is to try and cushion the debt the taxpayers have accumulated over time.
Process
They also mentioned that the process can be done online and by visiting ERS offices, to have the tax payment re-calculated before being allocated the 12 months period to pay.
The Tax Debt Relief programme allows taxpayers with outstanding tax liabilities to pay the principal debt or make payment arrangements to liquidate the principal debt. Acting ERS Commissioner General Brightwell Nkambule said the programme is a necessity to the economy of the country because many businesses have a tendency of ignoring the principal tax. This was during its launch last week.
He said ERS usually take their agents (businesses that are registered and pay taxes) to court for the interest and penalty tax excluding the principal tax.
He said this is an opportunity for taxpayers with outstanding tax liabilities to come and declare when they will pay the principal Tax debt.
“When people pay the principal tax debt, this act assists the government in the task to revive the economy which was affected by the pandemic”, he said.
Nkambule also mentioned that the programme is set to provide relief for ERS, government and the debtors. He said the relief is about E3 billion.
Minister of Finance Neal Rijkenberg said the Ministry is aware that the prevailing economic conditions are making it even more difficult for most businesses and all persons expected to contribute to the fiscus through payment of taxes.
Complicated
He said this is more complicated for those who are contending with debts with the ERS, particularly due to penalties and escalating interest.
“I made a commitment that the ERS would develop a Tax Debt Relief Programme meant to assist taxpayers who find themselves with debts that are very difficult to repay,” he said.
The minister said this programme shall provide relief on interest and penalties having considered taxpayers’ different circumstances. He said the ministry empathizes that taxpayers who have heavy debts, cannot absolve any taxpayer from paying the principal tax debt. Rijkenberg said this programme is available to all taxpayers with outstanding tax liabilities as at March 31, 2022.
He said the program will be open for a period of three months.
Taxpayers are expected to pay the principal debt or make a payment arrangement to liquidate the principal debt and thereafter have the interest and penalties waived. “During this programme, all taxpayers who enrol for this programme are expected to fully comply with all tax obligations”, he said.
The minister also mentioned that any taxpayer who fails to meet these conditions will be disqualified from the programme and all outstanding taxes including all penalties and an interest will become due and payable.