SACU’s E1.5bn bailout
MBABANE – The *overnment of (swatini has pro posed to put ( . billion into the Stabilisation )und to cater for any reduced SACU receipts.
The Southern African Cus toms Union SACU receipts for (swatini are e[pected to increase from ( . bil lion to ( . billion in the 2023/24 financial year. The announcement was made by the 0inister of )inance, 1eal Rijkenberg, at a press briefing held by the ministry.
This is the highest amount that the country has ever received from the regional bloc and the minister said it was driven by a higher than projected outturn of the 202 /2022 Common Revenue 3ool CR3 .
REFLECTS
This reflects a 2 per cent increase in the projected si]e of the CR3 for 2023/2024 compared to 2022/2023 and an increase in (swatini¶s share of total intra SACU imports from . per cent in the rev enue sharing framework for 2022/2023 to 0. per cent in 2023/2024.
Rijkenberg said the volatility in SACU receipts had caused the economy to remain on an unsustainable path for a long time. )or that reason, he tabled the regulations for the SACU Stabilisation )und he proposed to put ( . billion into the fund to cater for any reduced SACU receipts in the future.
“As this year¶s budget is driven by sustainability, this fund should ensure that we remain on a sustainable path in the long term,´ he said.
*overnment revenue includ ing grants in the 2023/24 fis cal year is projected to reach (24. 4 billion, which is 30 per cent of *'3, an increase of about five percentage points on the 2022/23 budget. 2f this, SACU receipts will con tribute ( 0.2 billion from ( . billion in the previous year.
1on SACU revenue was budgeted at ( 3. billion from ( 2. billion, a growth of seven per cent.
BUDGET
Total income ta[es were pro jected to be ( . billion in 2023/24 a slight increase from the previous year¶s budget.
The minister said this was because of higher e[pected growth and employment in 2023/24 compared to 2022/23. 2ut of this, corporate income ta[es were ( . billion and personal income ta[es are (4. billion.
Total ta[es on goods and services are e[pected to be ( . 3 billion. This is mainly 9AT which is budgeted at (4. billion and fuel ta[es amount ing to ( .3 billion.
:hile SACU remains vola
GOODS & SERVICES
Petroleum Oil & Fuel
ICT & Electrical Components
Medicines & Medical Instruments
Agricultural & Industrial Chemicals
Motor Vehicles, Parts & Accessories
Cement Products, Bitumen & Asphalt
Maize / Corn, Wheat & Rice
Woven Fabric / Yarn
Bottled Water tile, +is 0ajesty .ing 0swati ,,, said SACU receipts from (swatini were e[pected to increase by 02 per cent in 2023/24 from ( . billion in 2022/23 to ( . billion.
,n his Speech from the Throne, the .ing said the SACU revenue formula was in the process of being reviewed and could result in decreased receipts going forward.
PROJECTIONS
:ith these projections in mind, he said it was important to ensure the country utilised the gains to save for dry days.
“,t is eTually important to strengthen the collection of revenue internally, while pur suing cost cutting measures,´ he added.
:orth noting, SACU busi nesses will this year access the African Continental )ree Trade Area AfC)TA market.
SACU Category A products will be the first to be traded in the AfC)TA market, which is beneficiary to the country.
IMPORTS SOURCE
South Africa, India, Turkey, Italy
South Africa, China & Taiwan
India, United States, Turkey, Taiwan
South Africa, India, United States, China
South Africa, India, Japan, Singapore
Mozambique, South Africa, Malaysia
South Africa, Argentina