AIRTIME TAXATION: Inyandzaleyo economic Hitmen on the loose
At exactly 0140 hours according to local time , am still awake…I don’t feel like sleeping because when I tried a few hours ago I was woken by a strange dream where some neatly dressed corporate head announced taxation tariffs on my cellular phone.
Does such mean that I am having full ownership of my cellular phone gadget? So this means that there would be a direct reduction in comments such as “Ngelwami lolucingo ngiko ngingakalibambi” from all trying to get away from constant eardrum bursting questions filled with lust. To me this taxation of airtime is none other than being leased talk time by the State when it should be its obligation to ensure that its citizens benefit from their right to development as enshrined in the Economic, Social and Cultural Rights.
The country is still swimming in the filth filled economic chaos despite the assurance made by the Minister of Finance Majozi Sithole (Do I still trust this man?) that civil servants will be able to receive their merge salaries for the next four months. It is not a hidden joke , Swaziland is experience a mudslide of cash. All thanks should be forwarded to whosoever from the country’s financial institutions who has made an effort to borrow a ‘broke female friend’ money to pay her servants. I know our country’s democracy is yet to be defined but it has been unfair from tinini telive to showcase a silence protocol while we have been screaming for help.
While government is trying so hard to wake up from the honeymoon of enriching tenderprenuers is also battling with silencing the ever increasing number of protesters in the country’s streets and this has proven to yors truly that these so called tinini are no good they are just concerned about their capitalist investments in the country and will be changing base in the next few days.
In the last two years , no would have thought the situation would be this bad , maybe we would have long tried to make efforts of implications political recommendations made by locals and international observers. Once again I would like to thank the local institutions for the bail out but on the other hand I would like to warn the Minister of Finance that John Perkins has always stated in his writings that bailouts serve the creditors while they enslave the debtors.
Although protesters swarm the streets of Mbabane, supporting to the draconian measures being imposed by the IMF and it seems like the country's leadership is crumbling; We have to bow down to IMF demands and then accept the bailouts. Identically to the recently announced financial bailouts by local financial institutions Perkins in his writings is of the view that “it has become evident that bailouts in our own U.S. crisis have only benefited the corporatocracy, with CEO's paying themselves outrageous bonuses. This method of borrowing against the well-being of a country's citizens merely serves to increase the power of the central banks, the IMF and corporate CEOs.In my books, I write about how world economics and politics today are controlled by a very few people -- the corporatocracy. This is clearly demonstrated by the fact that whenever "debt restructuring" or "debt forgiveness" deals are struck they include privatizing parts of the economy that were previously considered public. Utilities, schools, prisons, even significant parts of the military are sold to multinational corps. Those who demand smaller government, are -- knowingly or not -- supporting a new brand of corporate imperialism.
My heart is bleeding because very soon we should not be surprised to see our government being controlled or influenced by the corporate sector which literally in the next elections in 2013 we will be voting for those with fat wallets instead of those who will make laws which will benefit the ordinary Swazi from Somntongo. Without inciting any Swazi citizen to any uprising we must just reject robbers from the corporate sector.
Before I finish this piece I have stumbled over this heartbreaking news that it is proposed that we will now be taked for our mobile phone usage…I understand that this is not only in Swaziland but a total of 11 countries in the world tax mobile phone usages in addition to general sales taxes. We understand that with MTN Swaziland’s monopoly thay have tried to instill economic growth following their healthy mobile business to the vulnerable ordinary Swazi. After failed to qualify for an economics degree in the Institution of Higher learning in my country I wonder with the eleven years into the game have they boosted the country’s gross domestic product…
If government proceeds with this taxation let us hope that MTN and SPTC mobile services will be less affordable and should cut associated impact of mobile phones and mobile broadband services. Recently a study was conducted in 21 coountires which included 12 in sub Saharan Africa discovered that consumers in Turkey continue to pay the most airtime tax at 43 % , followed by the Gabonese Republic at 36% , Pakistan at 31%, Uganda at 30%, Croatia at 29% and the Democratic Republic of Congo at 28%.
Many governments tax mobile services as a luxury and it has been proven that airtime taxes represent a large proportion of the total level of taxation and represent a barrier to development of services by reducing usage , especially in developing countries like Swaziland where consumers have lower income levels and are highly price sensitive. We should be surprised when these taxes are added to retail prices , raising the cost of mobile services and contributing to a reduction in their consumption.
"This study has found that taxes on buying handsets are notably proportionatly higher than taxes on usage of mobile services in developing markets, leading to unbalanced taxation profiles for mobile-related services. Higher handset taxes increase the retail price which limits access to mobile services in developing markets where consumers are particularly price sensitive. Tax cuts in this area have the potential to significantly boost access to mobile services and their consumption," said Chris Williams, Deloitte Telecoms partner.
