UNIVERSITY OF SWAZILAND
Institute of distance education

ECON 104 Assignment 1

Maphuzu Dlamini
138176
Diploma in Commerce
Level 2
28 January 2012
Question 1
Taxation in Swaziland
Definition
This is the compulsory transfer of funds from the private sector to the public sector also known as the fiscal levies. They are a form of government finance in order to finance economic and social objectives of the country. The forms of taxation in Swaziland
Taxation can either be direct or indirect. Direct tax is the one levied on income or corporate profits .Namely income tax .Whereas indirect tax is the one levied on goods and services such as the sales tax or value –added tax and customs and excise duties. So as they are explained below; a) Sales tax/VAT; this is tax payable on imports both at importation and on goods manufactured and specified services supplied in the country thus is charged at specific rates. This is known as indirect tax as it is implemented on goods and services and is implemented according to the sales tax act. Thus as the Swaziland Revenue Authority is planning to implement the value added tax from the 1st April this year.

b) Customs and excise goods; these are tariffs charged on goods outside the country and into the country. Although being a member of the South African Customs Union (SACU), Swaziland shares the same tariffs as those under SACU. They are liable to customs duties and for the same classes of goods also excise duties. Sales tax is also payable on imports from SACU and elsewhere. Excise duties are also payable on domestically produced i.e. alcohol drinks, cigarettes, etc. This also falls under indirect tax. Under the Swaziland Revenue Authority The customs and excise duties they have the following responsibilities;

* To collect revenue due- enforcement of controls to protect society. * Prohibition, restrictions, regulatory