The Eswatini Revenue Service (ERS) reported a total of E14.612 billion in revenue for the 2024/25 financial year.
This surpassed its target of E14.544 billion by 0.5%. This achievement, according to the latest ERS annual report, marks a 12.2% year-on-year growth, reflecting both the country’s economic recovery and the ERS’ growing efficiency in revenue mobilisation.
The revenue figure is a substantial improvement compared to the previous year, where the ERS recorded a growth of E1.588 billion.
A variety of taxes contributed to the overall positive performance, with notable increases in Value Added Tax (VAT), Company Tax, Other Income Tax, Road Toll, Lotteries and Gaming, as well as Motor Vehicle Levies, all surpassing their respective targets.
Brightwell Nkambule, the commissioner general of ERS, attributed the success to the strategic initiatives that have been implemented over the past year.
“This performance was supported by targeted revenue mobilisation initiatives, enhanced enforcement efforts, and client-centric service innovations,” Nkambule said.
One of the key highlights of the year has been the introduction of the ERS 2024–2027 Strategic Plan, which is focused on digitalisation, data-driven decision-making and a partnership approach to revenue collection. This strategy is expected to revolutionise how the ERS engages with both taxpayers and stakeholders.
As part of its strategic plan, ERS achieved significant milestones, including the successful go-live of the Oracle Revenue Management & Billing System (ORMB).
“These projects directly contribute to our goal of 100% voluntary compliance and have enhanced both service delivery and operational transparency,” Nkambule noted.
Additionally, the rollout of the Automated Contact Centre System and progress in the Integrated Payments Solution were key steps towards the ERS goal of making tax compliance simpler and more accessible for citizens.
The ERS also focused on stakeholder engagement throughout the year, particularly with campaigns like Bafundzise, aimed at educating and encouraging voluntary tax compliance.
ALSO READ | NEAL TABLES E36.92BN BUDGET THAT MARKS HISTORIC INCREASE
Nkambule highlighted that the ERS achieved a higher voluntary compliance rate of 70.5%, a notable increase from previous years.
While the overall revenue performance was strong, the report noted that there were some areas of concern. Major tax types such as Individual Taxes, Fuel Tax, and Alcohol & Tobacco Levies underperformed against their targets.
However, these taxes still saw improvements when compared to the previous year, with Fuel Tax as well as Alcohol and Tobacco Levies improving by 2.5% and 26.7%, respectively.
Meanwhile, the report stated that Road Toll collections, although exceeding their target by 2.5%, showed a decline of 15.4% compared to the previous year. This was attributed to administrative changes made in the final two months of the 2024/25 financial year, as Road Toll is now collected on behalf of the Road Authority.
Despite these challenges, Nkambule expressed optimism about the future.
“Our cost of collection decreased to 3.34 cents per Lilangeni from 3.71 cents, marking a historic low and further indicating the improved effectiveness of our operations,” he explained.
ERS Board Chairperson, David Dlamini, reiterated the importance of the ongoing transformation within the organisation.
“The current strategic plan adopts the previous theme of ‘Digitalised and Data Driven with our Partners,’ and I am optimistic that its successful implementation will propel us towards achieving the vision of 100% voluntary compliance for the Kingdom of Eswatini,” Dlamini remarked.
