THE House of Assembly has supported changes to the Value Added Tax (Amendment) Regulations, 2026 aimed at removing tax on donated goods entering the country.
Members of Parliament said the move would encourage more organisations and development partners to assist the country.
The changes were presented through the report of the Finance Committee by Lobamba Lomdzala Member of Parliament Marwick Khumalo.
Khumalo said the regulations were intended to ensure that donor-funded goods brought into the country would be exempt from Value Added Tax (VAT). He said donations were made in good faith, but the tax requirement had been placing an unnecessary burden on those acts of generosity.
Hhukwini MP Alec Lushaba welcomed the move, saying it did not make sense for people or organisations extending a helping hand to be required to pay tax on donated items.
He said there had been instances where beneficiaries had to find money to pay tax before receiving donated goods, defeating the purpose of the assistance.
Lushaba, however, cautioned that the exemption should not be abused by people falsely claiming that goods were donations to avoid paying tax. He said those found abusing the system should be dealt with under the law.
Minister of Education and Training Owen Nxumalo also supported the regulations, saying they would benefit sectors such as education.
Nxumalo said there were several organisations willing to donate items such as computers and other equipment to schools, but some were discouraged by the tax obligations attached to such donations.
Lobamba MP Michael Masilela sought clarity on whether the regulations would also allow Members of Parliament and other individuals to import blankets and other goods from outside the country for donation to needy people in their constituencies without paying tax.
He said many leaders wished to assist vulnerable communities through donations sourced outside the country and hoped such assistance would qualify for the exemption.
Not all MPs supported the proposal. Mhlangatane MP Madala Mhlanga questioned whether removing the tax was appropriate at a time when the country relied on tax revenue.
He said the country was developing but was adopting standards used by developed countries. Mhlanga argued that donors were generally wealthy enough to pay the tax and warned that some people could exploit the exemption by pretending that commercial goods were donations.
Responding to the concerns, Khumalo said politicians were encouraged to contribute towards community activities, but such personal contributions would not qualify for the tax exemption.
He stressed that the regulations were meant for genuine donor assistance and were intended to remove the burden that tax placed on charitable donations.
Meanwhile, Parliament also adopted the report of the Finance Committee on the Customs and Excise (Amendment) Regulations, 2026.
The report was moved by Khumalo and seconded by Sigwe MP David Cruiser Ngcamphalala.
Khumalo said the amendments revised storage charges for goods kept in bonded warehouses. He explained that goods weighing less than 500 grams would attract a charge of E200, while goods above 500 grams but below one tonne would attract E500, replacing much lower charges in the previous regulations.
He also said the regulations had been updated to recognise the King Mswati III International Airport, which was not in operation when the previous regulations were made.
During the debate, Mhlanga urged government to focus on controlling its spending instead of placing more pressure on taxpayers.
He said government should first determine whether borrowing was necessary and ensure that expenditure was properly funded. Mhlanga said if the amendments would not result in additional costs for Emaswati, then they would be acceptable, but taxpayers should not be made to carry the burden of excessive government spending.
In response, Khumalo clarified that the charges under the customs regulations were not taxes.
He explained that they were storage fees charged for goods kept in bonded warehouses after being confiscated for entering the country illegally or under other circumstances requiring customs detention.
He said the charges were rent paid by the owners while the goods remained in storage and should not be confused with tax.
