WRITTEN QUESTION E-0765/00 by Bart Staes (Verts/ALE) to the Commission. Tax reforms in Southern Africa.
Date: 2000-03-13
Institutions: European Parliament, Provisional data
Subjects: Botswana, EU aid, Eswatini, Lesotho, Namibia, aid programme, tax reform

13.2.2001

EN

Official Journal of the European Communities

C 46 E/39

(2001/C 46 E/044)

WRITTEN QUESTION E-0765/00

by Bart Staes (Verts/ALE) to the Commission

(13 March 2000)

Subject: Tax reforms in Southern Africa

In his answer to question E-2382/99 (1), Commissioner Poul Nielsen said that: (cid:145)The Community is ready to
assist the BLNS countries in implementing fiscal reform, necessary to diversify their sources of income(cid:146).
This would enable the countries in question to absorb the financial consequences of the free-trade
agreement between the Community and South Africa.

1. What specific measures does the Commission have in mind to help (a) Botswana, (b) Lesotho, (c)
Namibia and (d) Swaziland in reforming their tax systems?

In what way will the Commission implement these measures in (a) Botswana,

2.
Namibia and (d) Swaziland?

(b) Lesotho,

(c)

3. When will the Commission start implementing these measures in (a) Botswana, (b) Lesotho, (c)
Namibia and (d) Swaziland? When will the proposed fiscal reform be completed?

(1) OJ C 280 E, 3.10.2000, p. 36.

Answer given by Mr Nielson on behalf of the Commission

(13 April 2000)

The Commission would like to reassure the Honourable Member that the Community is ready to assist
Botswana, Lesotho, Namibia and Swaziland (BLNS) in implementing fiscal reform according to their own
established timetables and their own fixed priorities.

It must be recalled that no fiscal or financial effects on the economies of the BLNS countries, as a
consequence of the implementation of the trade and development cooperation agreement (TDCA), are
foreseen before the year 2006. Most South African tariff reductions will only start six years after the entry
into force of the agreement, and most cuts in duties will only come towards the end of the transitional
period of twelve years.

Fiscal reform in the BLNS countries should not only be seen in the context of possible financial
consequences of the TDCA, but should take into account as well the possible consequences of the ongoing
negotiations on the reform of the Southern African customs union (SACU) and the trade negotiations for a
free trade area between the Southern African development community (SADC) member states.

The Commission is preparing a support programme in close cooperation with the BLNS countries. The
first phase will undertake analysis on adjustment issues arising from trade liberalisation and prepare
activities to take advantage of the new opportunities in addition to coping with the necessary adjustment
process. This phase is valued at € 6 million and is foreseen to be implemented over a three year period
from January 2001-December 2003. A second phase will involve a package for assisting the private sector
to enhance their competitiveness through the introduction of new techniques, improved management and
work practices and retraining of labour, and the design, where appropriate, of transitional budgetary
support programmes within the context of coherent macro economic programmes. A third phase could
focus on the implementation of such programmes.