BY THEMBA ZWANE
BIG BEND– Ubombo Sugar, in collaboration with the Eswatini Revenue Service (ERS), is hosting a two-day tax compliance training programme at Phumulamcashi aimed at empowering about 120 smallholder cane growers with essential knowledge on legal and tax requirements.
The initiative is designed to strengthen sustainable farming practices while also supporting local economic growth by ensuring that farmers understand and comply with the country’s tax regulations.
Through the training sessions, smallholder growers are being guided on how to manage their tax obligations and operate within the legal framework governing business activities in Eswatini. Organisers say the programme is also intended to help farmers improve their financial management and maintain proper compliance records as they grow their businesses.
The Eswatini Revenue Service enforces tax compliance through the mandatory filing of income tax, Value Added Tax (VAT) and Pay-As-You-Earn (PAYE). Taxpayers are expected to meet their obligations within the stipulated deadlines, with penalties imposed for late submission or non-payment.
Businesses are also required to secure a Tax Compliance Certificate (TCC) in order to operate and transact with certain institutions. In particular, the certificate is required for tenders and contractual payments exceeding E20 000.
ERS has also introduced the TaxEase online platform, which allows taxpayers to manage their compliance obligations electronically at any time. Through the portal, businesses and individuals can file tax returns, check their compliance status and manage payments on a 24-hour basis.
The training programme therefore seeks to equip cane growers with practical knowledge on how to use such systems effectively while ensuring that they remain compliant with the country’s tax laws.
Meanwhile, the issue of Tax Compliance Certificates has recently attracted debate within Parliament, where some Members of Parliament (MPs) have raised concerns about the strict requirements associated with obtaining the certificate.
During a recent portfolio committee debate under the Ministry of Finance, some MPs reportedly argued that the strict requirements should be reconsidered as they may place pressure on local businesses that are already facing financial challenges.
Mbabane East Member of Parliament Welcome Dlamini reportedly stated that ERS, together with the Eswatini Electricity Company (EEC), were among the most criticised institutions by the public. Delivering part of his remarks in siSwati, he described the two entities as “bofacata bobabili”.
The word “facata” is commonly used to refer to scammers.
Mahlangatja Member of Parliament Mgucisi Dlamini also raised concerns during the same discussion, warning that young children might grow up associating the tax authority with negative perceptions.
He said that some local businesses have been forced to shut down, adding that many of the remaining businesses were owned by foreign operators who allegedly do not always reinvest their earnings locally.
Despite the debate, ERS continues to encourage voluntary tax compliance among businesses and individuals. The authority has warned that tax evasion can result in severe penalties, particularly as it intensifies audits in sectors such as retail and wholesale trade.
Key tax compliance requirements include the submission of accurate income tax returns, payment of provisional taxes by companies on 31 December and 30 June, and the deduction of PAYE by employers, which must be paid by the seventh day of the following month.
Companies are also required to comply with withholding tax obligations. Failure to withhold or remit tax within the required time frame may result in penalties ranging from 10 to 25 percent of the outstanding amount.
Through initiatives such as the Phumulamcashi training programme, stakeholders hope that farmers and small businesses will gain the knowledge necessary to meet these obligations while strengthening their participation in the country’s formal economy.
(Courtesy Pic)
