Mbabane – Minister of Finance Honourable Neal Rijkenberg has announced the deployment of a specialised team of tax experts from Uganda to support the Eswatini Revenue Service (ERS) in tackling VAT fraud in the retail and wholesale sector.
Addressing the public during a Finance in Focus session, Rijkenberg noted that while overall tax revenue in Eswatini continues to grow at double-digit rates without raising tax rates or thresholds, VAT collections from shops and wholesalers have shown a worrying decline.
“This is an area that is really causing trouble for us as a country,” the Minister said. He explained that despite ERS performing well in general tax administration, VAT receipts from the retail sector have fallen when they should normally be increasing.
Government investigations point to widespread VAT fraud as a major contributor, including businesses that collect VAT from consumers but fail to remit it to the authorities, or submit fraudulent claims. “To put it bluntly, some businesses are taxing Emaswati and then keeping that VAT for themselves,” Rijkenberg said.
He said ERS efforts alone were not sufficient due to the scale and complexity of the problem, prompting the engagement of the Ugandan team, a country recognised for its success in combating tax fraud and improving compliance.
“The team from Uganda has now landed in the country and they are starting work immediately,” Rijkenberg said. “They will help ERS identify businesses not paying VAT or committing fraud, and ensure they are held accountable.”
The Minister stressed that government would pursue accountability for historic cases where evidence exists. “If companies have been naughty and committing tax fraud, they will be held accountable,” he said. “As a country, we all need to pull our weight. The tax system is designed to protect the poor, but we cannot allow one sector to opt out of its responsibilities.”
Rijkenberg added that improved VAT compliance would directly benefit citizens, funding essential public services such as roads, schools, and hospitals. “This is not something negative. It is something very positive for Eswatini because when taxes are properly collected, Emaswati get the benefit through better service delivery.”
Beyond taxation, the Minister discussed broader anti-corruption initiatives, including preventive systems and technology. He cited government vehicle and fuel management systems that have reduced fuel consumption by about 40 percent, and the rollout of the Integrated Financial Management and Accounting System (IFMAS).
“These systems close gaps that allow corruption to happen,” he said. “Transparency and technology are the most effective tools to prevent corruption before it occurs.”
Rijkenberg urged businesses and the public to cooperate with the Ugandan experts and ERS, describing the initiative as essential for fairness, accountability, and sustainability in Eswatini’s tax system. “We know where our problem lies,” he said. “With the right support, we believe this intervention will make a significant impact in addressing VAT fraud in the retail sector.”
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