... VOLUNTARY TAX COMPLIANCE INCREASES TO 66.6%

MBABANE – The Eswatini Revenue Service (ERS) says some businesses have continued to comply with their tax obligation and the voluntary compliance has increased to 66.6 per cent from 64.6 per cent.

This increase was observed in the period from 2022/23 to 2023/24 financial year.  By voluntary compliance, it means on-time filing of returns for all tax types, no outstanding returns and on-time payments, no debt or if there is, be up-to-date with payment arrangement. Speaking during the 2nd ERS annual client appreciation day held last Friday at the Happy Valley Hotel, ERS Head of Business Strategy and Development Edward Groening said as ERS, they strongly encouraged voluntary compliance as it makes work easier for both the taxpayer and ERS.

Target

Groening shared that revenue collection for the year ending March 31, 2024, amounted to E13.024 billion, surpassing the set target of E13.009 billion reflecting an increase of 8.2 per cent from the year 2022/23. Echoing, Groening’s presentation was the Minister of Finance Neal Rijkenberg, adding that this represented a year-on-year increase of E986.79 million in revenue or 1.2 per cent of GDP, reflecting a tax-to-GDP ratio of 15.4 per cent for the year 2023/24. The minister said collecting revenue up to and exceeding the estimated levels by the ERS has helped ensure that government receives the planned revenue.  He said this significant achievement reflected the deliberate and intensified efforts by the ERS to improve revenue collections through targeted mobilisation initiatives and an unwavering commitment to being a customer-centric organisation. This performance by the ERS reflects ‘Nkwe for growth’ in action.

Rijkenberg said the ERS has already heeded His Majesty’s call, setting the tone for what we can expect in this financial year. He stated that to support the administrative efforts of the ERS, we have improved some areas of tax policy and facilitated administrative measures of the ERS.  Rijkenberg mentioned that specific developments in this regard include the amendment of the income tax order, which has among other aims, the purpose of improving tax administration.

Accumulating

“We are also grateful to have supported administrative efforts towards tax debt, reduction like managing SOE tax debt, which has now stopped accumulating, withholding of VAT from government suppliers and the ‘Sondzela Sikhulume’ campaign that targets to support taxpayers that are troubled by tax debts,” said the minister.

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