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ERS turns to technology amid E4.25bn annual tax gap

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ERS Commissioner General Brightwell Nkambule along with the Serbian technology company, Data Tech International, which has been engaged by the ERS to develop and implement the TaxCore solution. (Pics: Nhlanganiso Mkhonta)
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EZULWINI – The Government of Eswatini has intensified efforts to plug an estimated E4.259 billion annual tax leakage through the introduction of a new Electronic Invoicing Programme known as TaxCore.

This is a system expected to modernise tax administration, improve compliance and strengthen domestic revenue collection.

The programme was officially launched yesterday at the Eswatini Revenue Service (ERS) Headquarters in Ezulwini by Finance Minister Neal Rijkenberg, who described the initiative as a critical milestone in the country’s drive towards a more transparent, efficient and technology-driven tax system.

Speaking during the launch, Rijkenberg said the country could no longer afford to lose billions of Emalangeni through tax evasion, underreporting and non-compliance while the demand for public services continued to rise.

“It is a pleasure to join you today to introduce an important step in the modernisation of tax administration in the Kingdom of Eswatini, through the introduction of the Electronic Invoicing Programme, TaxCore, that will support the Eswatini Revenue Service in strengthening compliance, improving revenue collection and building a more transparent tax system,” he said.

The minister noted that government continued to face increasing pressure to finance critical sectors such as health, education, infrastructure, public safety, social protection and economic development.

“To fund these national priorities, we need a strong, reliable and sustainable revenue base. This is not only a matter for the ERS, but it is a national matter, yindzaba yetfu sonkhe,” said Rijkenberg. He said when taxes were collected efficiently and fairly, government was better positioned to deliver services, invest in development and reduce dependence on borrowing.

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Real-time monitoring

EZULWINI – Finance Minister Neal Rijkenberg said TaxCore would transform the environment.

He said it will enable business transactions to be digitally recorded, securely signed and transmitted directly to the ERS in real time or near real time.

“This creates a stronger audit trail, improves the reliability of transaction data and reduces opportunities for manipulation,” he said.

Existing VAT and income tax reporting environment still relied heavily on manual processes and self-declaration, creating loopholes that allowed manipulation, suppressed sales, inaccurate declarations and fraudulent refund claims.

The system, he added, would move Eswatini’s tax administration from delayed detection methods to a real-time and data-driven compliance management framework.

Rijkenberg also emphasised that the programme was not intended to punish compliant taxpayers, but rather to create a fairer and more efficient tax environment for all businesses.

*Full article available on Pressreader*  

Minister for Finance Neal Rijkenberg.
Minister for Finance Neal Rijkenberg.
Data Tech International Founder and Chief Executive Officer Goran Todorov presented the technical overview of the system, explaining that TaxCore was already operational in countries such as Serbia, Fiji, Samoa, Rwanda and Bosnia.
Data Tech International Founder and Chief Executive Officer Goran Todorov presented the technical overview of the system, explaining that TaxCore was already operational in countries such as Serbia, Fiji, Samoa, Rwanda and Bosnia.

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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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