Friday, February 26We Break the News

Coronavirus – Eswatini: Measures to be Taken Following The National Emergency Declaration

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A National Emergency was declared in Eswatini on the 17’th of March 2020. This was necessitated due to the rapid spread of the Corona Virus (Covid 19) across the globe. The primary crisis is one of Health due to the infection rate of this deadly virus and measures have been declared to try to curb the spread of the virus. The secondary crisis that Eswatiniis facing, is an economical one. As the world economy slows down, stock exchanges crash, trade flows are curtailed and movement in countries is stopped, there is a need for Eswatinito put some measures in place to try and assist individuals and businesses that will be suffering the consequences of the economic crisis.

The following measures will be put in place:

Fuel prices will come down during the first week of April, however, the Ministry of Natural Resources and Energy is yet to finalize the calculations and will make the necessary announcement as usual.

The Central Bank has reduced the discount rate with 100 basis points that will reduce the cost of debt with 1%.

The Central Bank has reduced the liquidity requirement for the banks from 25% to 20% giving the banks more liquidity.

The Banks have announced that those individuals and companies that need short term financial support or relief can approach them and each application will be assessed on a risk-based approach.

Provisional tax payments: Taxpayers projecting losses will file loss provisional returns, hence no payment will be required. The due date has been postponed by 3 months, which means June declarations and payments are due in September and December declarations due in March 2021.

Extension of returns filing deadlines by 3 months before penalties kick-in, otherwise, the normal filling is welcome.

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