Mbabane – The Minister of Finance, Neal Rijkenberg, announced changes to Eswatini’s VAT-exempt goods list, which will take effect from 1 January 2026. The adjustments aim to correct long-standing errors and reduce the cost of essential items for citizens.
Rijkenberg said several products were either mistakenly attracting VAT or were wrongly included in the exemption list. “There is a gazette coming out that is making changes to the VAT-exempt goods in Eswatini, and this will be applicable from the 1st of January 2026,” he said.
A major correction involves investment-grade gold and silver imported through local banks. Rijkenberg explained that VAT had previously been charged at the border for refined gold or silver held for investment purposes, which he said was incorrect. “If the banks in Eswatini are importing gold or silver for people to hold investments with, there was VAT being charged at the border, that is wrong,” he said. Only refined, registered gold and silver bars intended for investment will qualify for exemption, while materials for jewellery production will continue to attract VAT.
The minister also announced the removal of condensed milk from the VAT-exempt list, stating it does not qualify as an essential good for low-income households. “We found that condensed milk was on the VAT-exempt list, it shouldn’t be, so we’re taking condensed milk out of the VAT-exempt goods,” he said.
Conversely, fresh maize meant for consumption will now be exempt from VAT. “Fresh maize for people to consume was being charged VAT, we’re now taking it off the VAT list,” Rijkenberg said.
Healthcare items will also see reduced costs. VAT will be removed from medical supplies previously taxed at the border, including wadding, absorbent cotton wool, gauze, bandages, surgical gloves, dressings, adhesive plasters, surgical instruments, sterile surgical materials, syringes, sterile tissue, and surgical wound-closure materials.
Reusable nappies and nappy inserts have been added to the VAT-exempt list to lower retail costs, along with sanitary pads, sanitary towels, and tampons, which were previously taxed. “We found that there was VAT being charged on these, removing VAT means the cost of these will also be reduced by 15 percent,” Rijkenberg said.
The minister said the VAT adjustments are designed to support vulnerable groups, correct administrative errors, and make essential goods more affordable for households across the country.
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