BY MBONGENI NDLELA
LOBAMBA – Eswatini’s 2025/26 budget comes amid declining Southern African Customs Union (SACU) receipts, forcing the government to focus on alternative revenue sources.
Minister of Finance Neal Rijkenberg highlighted that while SACU contributions have fallen from E13.07 billion to E10.40 billion, the government has strategically withdrawn E1 billion from the SACU Stabilization Fund to support this year’s budget.
“Our reliance on SACU receipts must decrease. We are implementing strategies to boost domestic revenue collection while ensuring that the tax burden remains fair,” Rijkenberg emphasized.
Revenue collection is projected to improve significantly through enhanced tax administration by the Eswatini Revenue Service (ERS). The government expects an increase in tax collection efficiency, particularly in personal and corporate income taxes.
Key Tax Revenue Projections:
- Corporate Tax Revenue: E9.05 billion (23.6% increase)
- Personal Income Tax: E5.80 billion (10.3% increase)
- Value Added Tax (VAT): E5.85 billion (15% increase)
- Fuel Tax: E1.43 billion (4.5% increase)
Non-SACU revenue sources, which include Value Added Tax (VAT), excise duties, and fuel levies, have been identified as crucial contributors to bridging the budget deficit.
“Our tax revenue improvements are not due to increased rates but rather better compliance and administration,” Rijkenberg assured.
Despite these revenue gains, the government faces the challenge of ensuring fiscal sustainability. The fiscal deficit of E2.88 billion must be carefully managed to avoid excessive borrowing. The government remains optimistic that a combination of improved tax collection and strategic financial management will maintain fiscal stability while supporting the country’s economic transformation goals.
