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Inside ERS’s E14.6bn 2024/25 revenue collections

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The Eswatini Revenue Service’s (ERS) latest annual report has unpacked how it collected E14.6 billion in 2024/25 and revealed efficiency gains and compliance trends.
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MBABANE – The Eswatini Revenue Service’s (ERS) latest annual report has unpacked how it collected E14.6 billion in 2024/25 and revealed efficiency gains and compliance trends.

However, with the recent release of the ERS Integrated Annual Report, the revenue authority has now provided a comprehensive breakdown of how that revenue was generated, the efficiency gains underpinning the collections, and the compliance and operational realities behind the headline number.

The report confirms that ERS collected E14.612 billion for the year ended March 31, 2025, exceeding its target of E14.544 billion by E68 million, marking a 12.2 per cent increase compared to the previous financial year.

The performance places renewed focus not just on the amount collected, but on the quality, sustainability and efficiency of revenue administration.

The annual report shows that revenue outcome was achieved against a backdrop of moderating domestic economic growth, with Eswatini’s real GDP growth estimated at 3.6 per cent, down from 5.0 per cent in 2023.

Despite the slowdown, domestic revenue growth outpaced nominal gross domestic product (GDP) expansion, pushing the tax-to-GDP ratio up to 16.7 per cent, from 15.9 per cent in the prior year.

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Compliance improves, but gaps persist

MBABANE – A closer examination of compliance trends reveals gradual improvement, although challenges remain.

Voluntary compliance increased to 70.54 per cent, up from 66.6 per cent in the previous year. While the improvement is notable, it remains below the strategic target of 73.5 per cent, highlighting the need for continued intervention.

Large taxpayers recorded the highest compliance levels, supported by dedicated relationship management and targeted engagement. However, compliance among small and micro taxpayers remained significantly lower, reflecting structural challenges such as informality, limited financial literacy and capacity constraints.

To address these gaps, ERS intensified taxpayer education initiatives and enforcement actions, including the Sondzela S’khulume Tax Debt Campaign, which resulted in E316.9 million being collected from 537 taxpayers who entered settlement arrangements. Despite improved collections, the report reveals that total tax debt continued to increase, emerging as a key area of concern. As at March 31, 2025, total debt stock stood at E6.35 billion, representing a 14.9 per cent increase from the beginning of the year. VAT debt accounted for the largest share at E3.71 billion, followed by PAYE and company income tax arrears.

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Digitalisation movesfrom ambition to impact

MBABANE – The 2024/25 financial year marked the first year of implementation of ERS’s 2024–2027 Strategic Plan, themed ‘Digitalised and Data Driven with our Partners’.

The report details substantial progress in digital transformation, including the rollout of the Oracle Revenue Management and Billing System, enhancements to the Integrated Payments Solution, the deployment of a cloud-based automated contact centre, and continued upgrades to ASYCUDA World for customs operations.

These investments translated into measurable operational gains. System availability averaged 99.9 per cent, surpassing internal targets, while taxpayer access to online services improved significantly.

*Full article available on Pressreader*

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Written by
Nhlanganiso Mkhonta

Nhlanganiso Mkhonta serves as Business Editor at the Times of Eswatini. He reports on business, economics, finance, investment, entrepreneurship and public policy, producing insightful coverage and analysis of the issues driving Eswatini’s economy and the wider African business environment.

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