Minister of Finance, Neal Rijkenberg, confirmed yesterday that government will not introduce any new taxes in the 2026/27 financial year.
This is with the exception of excise duties announced by South Africa, which form part of the Southern African Customs Union (SACU) revenue pool.
Instead, the focus will be on improving tax collection efficiency to bolster the nation’s revenue without increasing the tax burden on citizens.
Commissioner General of the Eswatini Revenue Service (ERS), Brightwell Nkambule, backed this approach, emphasising that government’s priority is to broaden the tax base through enhanced efficiency, not higher rates.
“The budget is larger this year, but there’s no increase in taxes,” Nkambule said.
“We need to collect more by improving compliance.”
Nkambule also pointed to a significant tax compliance gap, estimated at E4 billion annually, that remains uncollected.
The gap represents lost resources that could be used to fund critical national projects and services.
Much of the shortfall relates to Value Added Tax (VAT), particularly within the wholesale and retail sector. These gaps represent revenue that could otherwise support national priorities.
He urged citizens to fulfil their tax responsibilities, stressing that comprehensive compliance from all taxpayers could significantly narrow the shortfall.
“E4 billion is a lot of money and it is money we could collect if everyone paid their fair share,” Nkambule added.
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In his Budget Speech, Minister Rijkenberg said government’s tax administration reforms — including digitalisation and service-focused initiatives by ERS — were central to the strategy.
Through these measures, government aims to close the compliance gap and increase domestic revenue collection.
Tax collections increased by 12.2% this year, reflecting the effectiveness of the reforms. A further 13.2% growth is projected in the 2025/26 financial year.
The Minister also noted that government had completed key legislative reforms aimed at strengthening the tax system and widening the tax base.
These include:
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The Finance (Amendment) Act, 2025
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The Alcohol and Tobacco Levy (Amendment) Act, 2025
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The Income Tax (Amendment) Act, 2023
Government maintains that these reforms, together with stronger compliance enforcement, will enable increased revenue collection without raising tax rates.
