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Incentives to textile sector have not reaped dividends
25 Jan '10
1 min read
Giving tax breaks and incentives to overseas investors, particularly for investments given to the textile industry has not reaped any dividends, lamented the Commissioner of Taxes, Philda Msibi.
The commissioner noted that companies, which received a five-year tax-break, packed their bags and relocated to other countries at the end of the five-year period, from the time when they would need to start paying taxes.
After which the government introduced a new incentive for the textile industry, under which it needed to pay tax at the rate of 10 percent only, while the rest of the industry was imposed 30 percent, still companies shied away from paying taxes.
Msibi also mentioned that those companies which did not pay taxes in Swaziland were doing well by generating good profits from the businesses in their home countries.
Msibi also observed that the African Growth Opportunities Act (AGOA) which entails duty-free access for textile and apparel goods from Swaziland to the US had not been able to deliver on its true potential.
The commissioner noted that companies, which received a five-year tax-break, packed their bags and relocated to other countries at the end of the five-year period, from the time when they would need to start paying taxes.
After which the government introduced a new incentive for the textile industry, under which it needed to pay tax at the rate of 10 percent only, while the rest of the industry was imposed 30 percent, still companies shied away from paying taxes.
Msibi also mentioned that those companies which did not pay taxes in Swaziland were doing well by generating good profits from the businesses in their home countries.
Msibi also observed that the African Growth Opportunities Act (AGOA) which entails duty-free access for textile and apparel goods from Swaziland to the US had not been able to deliver on its true potential.
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