EZULWINI – Non-compliant employers are fast running out of hiding places as the ENPF and the ERS intensify efforts to clamp down on those failing to meet their statutory obligations.
This firm warning emerged during the signing of a memorandum of understanding (MoU) between Eswatini National Provident Fund and Eswatini Revenue Service at the ERS headquarters in Ezulwini yesterday.
Speaking at the signing ceremony, ENPF Chief Executive Officer Futhi Tembe delivered a strong message, declaring that the era of employer non-compliance was coming to an end.
“The signing of this memorandum of understanding is not just a formality—it is a firm declaration of our collective resolve to close the gaps that have allowed some employer non-compliance to persist for far too long,” she said.
Tembe emphasised that the ENPF exists to safeguard the future of the country’s workforce, stressing that contributions deducted from employees’ salaries are a legal obligation, not a discretionary act.
“Every contribution deducted from an employee’s salary is not a favour, not a donation and certainly not optional.
“It is a legal obligation. It is a commitment to the people who labour tirelessly day after day to sustain businesses and to grow this economy,” she said.
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ERS targets to close E4 billion tax gap
EZULWINI – On the taxation front, ERS Commissioner General Brightwell Nkambule revealed that the country is grappling with a significant tax gap estimated at around E4 billion.
“Our latest assessment shows that the tax gap in Eswatini hovers around E4 billion, much of it linked to Value-Added Tax (VAT) and Pay-As-You-Earn (PAYE),” he said.
Nkambule said closing this gap remains a top priority for the revenue service, adding that the collaboration with ENPF would play a critical role in identifying and addressing non-compliance.
He urged businesses and employers who are not fully compliant to come forward voluntarily.
“Our target is to close that gap and such shall be done soon. Non-compliant employers and businesses are urged to come forward,” he said.
The enforcement drive comes on the back of strong revenue performance by ERS.
ERS recently reported total collections of E15.7 billion for the 2025/26 financial year, representing a 7.6 per cent increase compared to the previous year.
Nkambule attributed the growth to disciplined execution across domestic tax and customs operations, sustained taxpayer engagement and the commitment of ERS staff.
Beyond annual performance, ERS has recorded consistent growth over time, with domestic revenue collections rising from E4.79 billion in 2012/13 to E15.72 billion in 2025/26—more than tripling over the period.
This trend reflects a gradual shift towards greater reliance on domestic revenue, reducing the country’s exposure to fluctuations in Southern African Customs Union (SACU) receipts.
In contrast, SACU revenues have remained volatile, recently declining from E13.07 billion in 2024/25 to E10.40 billion in 2025/26, a drop of 20.4 per cent in a single year.
“This shift matters because it shows Eswatini is increasingly funding its priorities through locally generated revenue rather than relying on a revenue line that can change materially from one year to the next,” Nkambule said.
*Full article available on Pressreader*
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