The country is guided by one unifying principle of agape love — love in action for economic transformation. This message was emphasized by Finance Minister Neal Rijkenberg, who urged businesses to comply with the income tax certificate regulations requiring valid certificates for cross-border transactions.
Minister Rijkenberg made the remarks during a stakeholder briefing at the Eswatini Revenue Service (ERS) Headquarters in Ezulwini yesterday. He revealed that the annual tax gap stands at around E4 billion, highlighting the urgent need for disciplined action beyond policy declarations.
He noted that revenue lost due to noncompliance could otherwise support clinics, maintain roads, fund education, empower youth, and strengthen infrastructure. Yet, some businesses continue to operate unregistered, while others fail to submit tax returns despite visible activity, under-declare, accumulate tax debt, or close and reopen under new names.
“Some businesses transfer substantial funds abroad without being compliant, effectively funding development in other countries with taxes that should be used to develop Eswatini. Meanwhile, compliant businesses compete against non-compliant ones; this is neither fair nor sustainable,” Rijkenberg said.
The Tax Compliance Certificate Regulations, gazetted in 2022, were designed to tackle this challenge. They target 13 specific transaction points to verify compliance, without introducing new taxes, penalizing honest businesses, or disrupting legitimate transactions. A tax compliance certificate serves as confirmation that a person or business is in good standing with the tax system, signaling integrity, discipline, and responsible participation in nation-building.
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Rijkenberg emphasized shared enforcement: the ERS issues compliance certificates and takes action against noncompliance, but financial institutions must also verify certificates before processing international fund transfers. Public and private procuring entities should insist on compliance before awarding contracts or issuing purchase orders, while licensing authorities should confirm certificates before completing designated transactions.
“A resilient economy must manage fund transfers responsibly. Fast payments cannot mean fast revenue leakage. Enforcement is embedded at key economic transaction points across the economy. This shared responsibility strengthens accountability, protects compliant businesses, and safeguards the integrity of our fiscal system,” the minister said.
He reassured financial institutions that while the banking sector remains resilient, well-capitalized, and liquid, speed must be matched with integrity. The ERS is committed to collaborating with banks to ensure digital verification is efficient and does not disrupt compliant customers.
