Ezulwini – The Eswatini Revenue Service (ERS) has reported a tax collection shortfall of E4.4 billion from the previous financial year, stating the need to strengthen compliance and close existing gaps in the country’s revenue system.
This was revealed during a media briefing and launch of the 2025 Tax Filing Season and Compliance Improvement Plan, held today at the ERS headquarters in Ezulwini. The event was officiated by Minister of Finance Neal Rijkenberg, who urged taxpayers to play their part in building a transparent and sustainable tax system.
According to the Minister, a recent Tax Gap Analysis conducted by the ERS revealed that E4.4 billion in taxes that were due had either not been declared or not paid. The most affected category was Value Added Tax (VAT), which accounted for E1.3 billion of the gap.
The Wholesale and Retail sector contributed the largest share of the shortfall at E600 million, followed by Manufacturing (E305 million) and Construction (E127 million).
Rijkenberg described the findings as a wake-up call, noting that while progress has been made in improving compliance, some businesses continue to under-declare income or operate informally, creating unfair competition for compliant taxpayers and depriving government of vital revenue.
To address this, the ERS launched a Compliance Improvement Plan (CIP), which outlines targeted interventions to enhance compliance across industries. The plan focuses on data-driven enforcement, encouraging voluntary disclosure, and promoting collaboration between the ERS and taxpayers.
“The E4.4 billion represents potential revenue that could have been channelled towards development priorities such as healthcare, education, and infrastructure,” said Rijkenberg. “Through this plan, we aim to close those gaps and ensure that everyone contributes their fair share.”
The Minister also commended the ERS for simplifying the tax filing process through digital platforms such as TaxEase and the ERS TaxPal App, which allow taxpayers to file returns conveniently from anywhere.
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