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SACU halts duty-free certificate for tax claims
Apr '11
Based on reports of wide-scale misuse, the duty-free certificate (DCC) which allowed the producer-cum-exporter of textiles to claim refund of the taxes paid in the country has been phased out.

Mary Dube, Director of Customs International and Projects for Swaziland Revenue Authority revealed that, these textiles were meant for exports and hence the exporters would claim duty refunds based on the volume of the export.

She further revealed that, this is the tax that the exporters paid when they import raw material from other countries to produce textiles for the sake of exports.

She stated the DCC to be an export incentive, which was availed particularly by the textile industry, and greatly helped to boost exports, but the same has been phased out since March end.

Dube revealed this information during a tax payers training at Emafini Conference Centre on April 13.

People who formed a part of such an initiative were exempted from payment of sales tax, and hence it was being greatly misused, and thus was halted at the Southern African Customs Union (SACU) level.

The SACU member states are in negotiations over introduction of a new scheme, which would be confirmed shortly.

The new scheme would draw funding from the SACU member states, Dube said.

Fibre2fashion News Desk - India

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