E4.2 BILLION TAX GAP: ERS LAUNCHES TAXCORE SYSTEM TO SEAL VAT LEAKAGES

News

BY MFANUFIKILE KHATHWANE

EZULWINI– The Eswatini Revenue Service (ERS) has unveiled the TaxCore Electronic Invoicing Programme, a cutting-edge digital tax administration system designed to strengthen tax compliance, improve revenue collection and close an estimated E4.259 billion tax leakage affecting the country annually.

The system was officially launched at the ERS Headquarters in Ezulwini on Monday, as government intensifies efforts to combat tax evasion, underreporting, non-filing and other forms of non-compliance that continue to deprive the country of billions of Emalangeni needed for national development.

Speaking during the launch, ERS Commissioner General Brightwell Nkambule described the introduction of TaxCore as a major milestone in modernising Eswatini’s tax administration system and building a smarter, transparent and technology-driven revenue collection framework.

Nkambule said the initiative forms part of ERS’ broader vision of achieving “100 percent voluntary compliance for a better Kingdom of Eswatini.”

He explained that ERS’ compliance strategy is built around four key pillars: taxpayer education, superior customer service, technology-driven compliance and responsible enforcement.

According to Nkambule, taxpayer education remains critical because informed citizens and businesses are more likely to comply voluntarily with tax obligations. Through initiatives such as Bafundzise programmes, stakeholder engagements and digital awareness platforms, ERS continues empowering emaSwati with knowledge about taxation and compliance.

“Voluntary compliance begins with awareness, understanding and trust,” said Nkambule.

He further highlighted ERS’ transformation into a service-oriented institution, revealing that the organisation’s Net Promoter Score improved significantly from 6.5 percent in March 2023 to 83.99 percent in March 2026.

“This reflects growing taxpayer confidence in ERS and shows that customer service is itself a compliance strategy,” he said.

Nkambule said TaxCore represents a key component of ERS’ digital transformation agenda, adding that future plans include integrating artificial intelligence tools capable of detecting risks, identifying anomalies and strengthening revenue assurance systems.

He explained that many businesses currently rely on manual invoice schedules and Excel-based submissions into the TaxEase platform, a process he described as slow, cumbersome and vulnerable to errors.

Under the new TaxCore system, invoice data will now be transmitted automatically and securely to ERS in real time or near real time as transactions take place.

“This system improves accuracy, reduces errors and strengthens the integrity of tax data,” he said.

Nkambule also revealed that the technology will empower consumers to verify whether VAT collected from them actually reaches government coffers.

“Some VAT collected from consumers does not always reach the fiscus,” he said.

Meanwhile, Minister of Finance Neal Rijkenberg stressed that efficient tax collection is essential for sustaining national development, especially amid growing demands for investment in healthcare, education, infrastructure and social services.

“This is not only a matter for the ERS. It is a national matter, yindzaba yetfu sonkhe,” said Rijkenberg.

The Minister disclosed that Eswatini currently loses approximately E4.259 billion annually due to tax evasion, underreporting and non-compliance, while domestic tax collection targets for the financial year stand at E19.48 billion.

“Meeting this target requires discipline, innovation and technology,” he said.

Rijkenberg noted that the current tax system relies heavily on manual processes and self-declaration, creating opportunities for suppressed sales, inaccurate declarations, non-issuance of invoices and weak record-keeping.

“The Electronic Invoicing System will address these weaknesses through real-time digital reporting,” he said.

He added that compliant businesses stand to benefit significantly from the new system through reduced paperwork, improved accuracy and the possibility of automated VAT returns in the future.

“Compliant businesses should not be disadvantaged by those who evade tax,” he said.

The Minister also commended Data Technical International for partnering with ERS on the project and reaffirmed government’s commitment to supporting modern and fair revenue administration systems.

ERS said TaxCore captures and secures every invoice at the point of sale before transmitting transaction data to the revenue authority in real or near real time. The system is expected to simplify compliance, improve accuracy and automatically detect non-compliance while operating independently from business payment systems.