Business Eswatini (BE) yesterday convened an emergency meeting to discuss VAT issues that have been raised by the CMT (Cut, Make and Trim) textile firms based in Matsapha. The companies requested an audience with BE following the amendments to the VAT Act of 2011 which came into effect on September 1 2022. According to these new amendments, local textile companies are now required to pay VAT on garments that they export out of the country which they cannot claim back. The companies further submitted that they have been placed in an unfavourable position in the market since their customers have to pay VAT in Eswatini and in their countries of operation, which has inflated the prices of the local products. The CMT companies say the amendments were made targeting them and if they continue to be in place, the companies will be forced to close down which leave 18 000 people without employment. The companies want to continue with the system where VAT is paid in the destination country. Business Eswatini says it had no input in the development process of the bill.
Sourced from: Eswatini Observer 23 November 2022
Nov 24 2022 12:39PM