Business Eswatini (BE) Chief Executive Officer E.Nathi Dlamini has cautioned that poorly sequenced implementation of the proposed Finance Bills could increase compliance costs, weaken business cash flow, discourage investment and place disproportionate burdens on small and medium enterprises (SMEs).
Dlamini made the remarks during stakeholder submissions to the Senate portfolio committee of the Ministry of Finance, which is considering five Finance Bills: the Income Tax (Amendment) Bill, Value Added Tax (Amendment) Bill, Fuel Tax (Amendment) Bill, Customs and Excise (Amendment) Bill, and Eswatini Revenue Service (Amendment) Bill.
The committee is chaired by Senator Tony Sibandze.
Dlamini said the bills contained several progressive reforms, including prospective VAT registration for investors, an extended permanent establishment threshold for non-resident service providers, advance customs rulings, recognition of authorised economic operator programmes and a statutory framework for one-stop border posts.
However, he noted that the package also significantly expands administrative powers, information-sharing requirements, digital compliance obligations, estimated assessments and penalties.
“The macroeconomic benefits of these reforms will depend less on the wording of the policy objectives and more on the quality, sequencing and proportionality of implementation,” he said.
According to Dlamini, the bills collectively represent a shift towards digital tax administration, source-based taxation, stronger enforcement, border modernisation and more flexible financing of the Eswatini Revenue Service (ERS).
He said the reforms could improve revenue mobilisation, reduce distortions between compliant and non-compliant businesses and strengthen fiscal sustainability by improving tax collection efficiency rather than increasing statutory tax rates.
However, Dlamini warned that the reforms could also shift administrative and financing costs from government to taxpayers.
He said measures such as electronic invoicing, system integration, enhanced record-keeping requirements, accelerated tax remittances, payment of taxes pending objections and expanded inspection powers could place pressure on working capital and negatively affect business confidence.
“The cumulative impact should therefore be assessed as a package rather than evaluating each bill in isolation,” he said.
Business Eswatini urged Parliament to adopt a balanced approach by preserving the investment- and trade-facilitating provisions while ensuring proper impact assessments, phased implementation, proportional enforcement, taxpayer confidentiality, effective dispute resolution and transparent oversight.
“This will support fiscal sustainability without undermining competitiveness, private investment and the ease of doing business in Eswatini,” Dlamini said.
