MBABANE – A local pharmacy chain has taken the Eswatini Revenue Service (ERS) to the High Court.
The pharmacy is accusing the tax authority of unlawfully withholding more than half a million Emalangeni in Value-Added Tax (VAT) refunds, dating back over a decade.
Chuks Investments (Pty) Ltd, trading as Rex Pharmacy and Nhlangano Pharmacy, filed a notice of motion before the High Court of Eswatini, seeking an order compelling the commissioner general of ERS to respond to long-standing demands for repayment of VAT refunds.
The company claims that since registering for VAT in 2012, it has submitted refund claims in line with the VAT Act of 2011, yet the bulk of its claims remain unsettled.
According to court documents, the pharmacies allege that despite being audited and confirmed as VAT-compliant suppliers of exempt and zero-rated goods, ERS has consistently refused or delayed payments.
Of a total E660 612.60 claimed between April 2012 and September 2024, the business says it has only received E98 008.95, leaving an outstanding balance of over E561 000.
In his founding affidavit, company manager Ogochukwu Mbachu argues that the pharmacy’s operations are under financial strain due to the delays. “Without a clear and definitive position on the VAT refunds continuously demanded, the applicant cannot have access to the Revenue Appeals Tribunal, which requires ERS to first issue a final decision,” he submitted.
The pharmacy’s attorneys, Sibusiso B. Dlamini Attorneys, contend that ERS has acted unlawfully by ignoring petitions and demand letters sent in January and May 2025.
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