BY MBONGENI NDLELA
EZULWINI – The Eswatini Revenue Service (ERS) is strengthening its commitment to closing the country’s estimated E4.4 billion tax gap through a strategic blend of technology, education, and collaboration, Commissioner General Brightwell Nkambule announced during the launch of the 2025 Income Tax Filing Season and Compliance Improvement Plan.
Under the theme “Closing the Revenue Gap through Service, Technology, and Collaboration,” Nkambule outlined a series of decisive interventions aimed at achieving 100% voluntary tax compliance, a goal he described as central to Eswatini’s economic sustainability and fairness among taxpayers.
Targeting the E4.4 Billion Gap
Eswatini’s tax gap, the difference between taxes owed and taxes collected, currently stands at E4.4 billion, with the Wholesale and Retail sector identified as the largest contributor, particularly in Value Added Tax (VAT).
Nkambule emphasized that while the gap is “significantly high,” the ERS is now better equipped with data analytics, fiscalization tools, and enhanced sector monitoring to detect under-declaration and non-compliance more efficiently.
“We are not only focusing on enforcement,” Nkambule said. “Our vision is to move towards 100% voluntary compliance, where every taxpayer fulfills their duty because they understand its importance, not because they fear penalties.”
Compliance Improvement Plan: From Education to Enforcement
The Commissioner revealed that the ERS has mapped out a detailed Compliance Improvement Plan (CIP) that balances service delivery with firm enforcement. The plan categorizes taxpayers into four segments:
• Voluntary Compliers – those who willingly meet obligations
• Assisted Compliers – those who need guidance or support
• Accidental Non-Compliers – those who fail unintentionally
• Deliberate Non-Compliers – those who evade tax intentionally
Each group will be addressed with targeted interventions. For voluntary compliance, the ERS will enhance automation and taxpayer services. For assisted compliance, officials will provide more hands-on support and education. For deliberate non-compliance, the ERS will detect, prosecute, and discourage such behavior using legal and technological tools.
Investing in Technology and Data Integration
The ERS is rolling out a Digital Transformation Agenda that integrates national databases to ensure accuracy and accountability.
This includes data matching between various government systems, such as those managing properties, trusts, commerce, and vehicle registrations, to verify tax declarations.
A major innovation is the Fiscalization Solution, which will automatically collect VAT data from cash registers in the retail sector.
Nkambule also announced that specialist VAT auditors from East Africa have been contracted to support investigations and audits in December, marking a new era of cross-border professional collaboration.
Empowering Taxpayers Through Education
Recognizing that compliance begins with understanding, ERS is ramping up its taxpayer education under the “Bafundzise” door-to-door campaign, which takes tax literacy directly to communities and small businesses.
The Client Relationship Consultants initiative, previously focused on large enterprises, will now be extended to small and micro-businesses, company directors, high-net-worth individuals (HNWIs), traditional leaders (Emabandla), and VIPs.
“Education is our first line of defense,” Nkambule noted. “When people understand the system, they comply naturally.”
Additionally, the ‘Sondzela Sikhulume’ programme will continue to help taxpayers settle outstanding debts without fear of prosecution, reinforcing the ERS’s commitment to partnership rather than punishment.
Building Partnerships Across Sectors
Nkambule made a passionate call to action for collaboration across all sectors of society, from the media to religious institutions and company boards.
Media organisations will soon benefit from a basic Tax and Customs training programme, positioning them as partners in educating the public.
Taxpayer representative bodies and industry associations are being urged to champion voluntary compliance within their networks. Company directors and trustees are reminded to file their returns diligently. Exempt entities such as churches, NGOs, and cooperatives must renew their exemptions annually to remain compliant.
“The media, the private sector, and civic groups are all extensions of our taxpayer education program,” Nkambule said. “When we all play our part, the nation grows stronger.”
Towards 100% Voluntary Compliance
The ERS’s ultimate goal, Nkambule concluded, is “Compliance by Default” — a culture where tax honesty becomes automatic through innovation, simplicity, and trust.
“Our strategy combines enforcement with empathy,” he stated. “Through technology, education, and collaboration, we will close the E4.4 billion gap and secure the future of Eswatini’s fiscal health.”
Key ERS Interventions for 2025
• E4.4 billion identified as the national tax gap
• VAT remains the most challenging area
• “Bafundzise” taxpayer education campaign
• “Sondzela Sikhulume” voluntary disclosure program
• Fiscalization system to collect real-time VAT data
• Specialist VAT auditors from East Africa engaged
• Client Relationship Consultants extended to SMEs and VIPs
• Tax and Customs training program for media
