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Low income textile earners burdened with 3% tax
10
May '10
Employees working in textile industry will now have to pay three percent of their salary as tax. Earlier, the textile and apparel sector employees were free from Pay As You Earn (PAYE) tax on account of their lower salaries.

As per the new tax reforms announced earlier this year, by the Finance Minister, Majozi Sithole, textile workers will have to pay taxes even though their salaries have not increased. They would have to pay taxes from the month of July this year, said Sipho Manana, Secretary General of the Swaziland Manufacturing and Allied Workers Union (SMAWU).

Manana further informed that, the workers are not happy with the new tax reform as their salaries are still very low. Maximum of these workers are paid E 965 per month and this wage comes under category II of the regulated salaries in this industry.

He further strongly condemned the move, under which a number of low-salaried workers, will have to part-away from their paltry earnings.

The other low-income earning workers from the industries including agriculture, production, retail, wholesale, restaurants, transport, security guards, general labourers and hospitality, would also have to pay 3 percent minimum tax.

Fibre2Fashion News Desk - India

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