MBABANE – The Business Federation of Eswatini (BUFE) says it is time for the country’s economy to return to the hands of emaSwati, – especially small businesses.
This was the strong message delivered by BUFE President Thulisile Dladla, during the organisation’s second Tax Indaba, held yesterday at the Theatre Club in Mbabane.
The indaba brought together business owners, accountants and tax practitioners for an intensive engagement on compliance, the ongoing Eswatini Revenue Service (ERS) audits and the challenges faced by micro, small and medium enterprises (MSMEs). BUFE said the session was specifically aimed at equipping businesses – particularly small ones – with the technical knowledge needed to comply with tax laws amid what many say is a tightening compliance environment.
Dladla said the current economic climate places disproportionate pressure on small local businesses, many of which are fighting to stay afloat. She noted that while foreign and large corporations appear to be expanding, smaller enterprises continue to face costly audits, penalties and limited access to business support.
“We want to see this economy return to emaSwati. Our small businesses are the backbone of the economy, yet they are the ones suffering the most. Through engagements like this Tax Indaba, we are capacitating them to meet compliance obligations so they can grow, compete and contribute fully to national development,” she said.
For BUFE, the Tax Indaba reinforced its broader mission: Ensuring that small businesses have the knowledge and capacity to operate legitimately and competitively. Dladla reiterated that if emaSwati businesses are to thrive, they must be supported with accurate information, accessible compliance tools and spaces where they can openly engage regulators.
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ERS explains purpose of audits
MBABANE – ERS Director – Audit Welcome Mkhonta said the current round of audits is aimed at strengthening the culture of compliance across all sectors.
He emphasised that audits are not meant to punish businesses, but to help identify gaps in tax declarations, promote fairness and ensure that all taxpayers contribute their fair share.
Mkhonta highlighted that non-compliance – whether deliberate or accidental – creates distortions in the economy, allowing some businesses to undercut competitors and depriving the state of critical revenue needed for development.
Recent findings from ERS’s Tax Gap Analysis reveal the scale of the issue: E4.4 billion in taxes remain unpaid. If collected, this revenue could strengthen government capacity to invest in healthcare, education, water, infrastructure and public services.The largest concern is VAT, where E1.3 billion remains uncollected.
Breakdown of unpaid VAT:
- Wholesale and retail: ~E600 million
- Manufacturing: E305 million
- Construction: E127 million
The analysis further shows that some businesses continue to operate informally or under-declare income, creating unfair competition for compliant taxpayers.
BUFE said this is one of the reasons small businesses often struggle: Those who comply face heavier costs than those who cut corners.
*Full article available in our publication
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