/ 5 September 1999

ESKOM GEARING UP TO START PAYING TAX

ELECTRICITY utility Eskom is gearing itself up to start paying tax as early as January 2000 in terms of new legislation covering its operations. Business Day reports that Eskom CE Allen Morgan has indicated that the utility will be affected by tough economic conditions and market volatility in the year to end-December — predicting a sharp fall in net income to around R1,8-billion from R2,75-billion last year. He said, however, that net profit will remain substantial and that strong growth is expected next year despite the tax burden. Parliament adopted the Eskom Bill last year which vests the ownership of Eskom’s assets with the state. The Bill also removes Eskom’s exemption from paying income tax, stamp duties, levies or fees.