THE kingdom is entering a new era of fiscal discipline, with the Eswatini Revenue Service (ERS) positioned as a central pillar of economic sustainability.
The move comes as government intensifies efforts to strengthen tax collection, improve compliance and modernise revenue administration.
The 2026/27 Budget projects E31.42 billion in revenue, of which E18.09 billion is expected from taxes, underscoring the importance of efficient tax systems in securing the country’s economic future.
Corporate Governance Expert Sandile Mbhamali said government has identified tax compliance, enforcement, digitalisation and improved revenue administration as key strategies in transforming the country’s fiscal framework.
“This marks a decisive shift towards modernisation, where technology and accountability are embedded into revenue collection,” he said.
The tax administration has evolved over the years, with the establishment of the ERS aimed at improving revenue collection, strengthening compliance and creating a more efficient system for managing government income.
Like many modern revenue authorities, the ERS has increasingly focused on digital solutions, information sharing and improved taxpayer services to reduce gaps in collection and encourage voluntary compliance.
Mbhamali said the ERS enhanced information-gathering powers, provided under the Income Tax Order of 1975, should not be viewed only as an enforcement tool but as part of a broader effort to create a fair and transparent tax environment.
“By requiring banks and institutions to cooperate, ERS is building a more transparent and efficient system that reduces loopholes and strengthens compliance,” he said.
He noted that the same legal framework that empowers the ERS also provides important protections for taxpayers. Section 5 of the Income Tax Order requires secrecy in handling taxpayer information, ensuring that sensitive data is not disclosed improperly.
The wider impact of tax modernisation extends to economic stability and national development. By securing sustainable revenue streams, government can increase investment in infrastructure, education, healthcare and social programmes. Businesses also stand to benefit from a more predictable tax environment that supports investor confidence, while digitalisation can reduce administrative burdens for both taxpayers and the revenue authority.
Mbhamali argued that tax collection should not be viewed as punishment, but as a pathway towards compliance and economic growth. Penalties and audits, he said, should serve as tools to promote fairness rather than measures that weaken businesses.
“This approach ensures that businesses remain productive, employees retain jobs and the tax base continues to expand,” he said.
“Eswatini is not simply collecting taxes; it is modernising its fiscal governance. The ERS is becoming a professional, technologically capable institution that balances enforcement with accountability. This is a positive story of institutional strengthening, where revenue collection supports national development while respecting constitutional rights,” Mbhamali said.
BANKING TRUST TO STAY STRONG
WHILE the Eswatini Revenue Service (ERS) strengthens its enforcement powers, Corporate Governance Expert Sandile Mbhamali stressed that banking confidentiality remains protected under the kingdom’s legal framework.
He said the Financial Institutions Act (2005) and the Data Protection Act (2022) ensure that customer information is handled responsibly, even when disclosed for tax purposes. “Banks are custodians, not owners, of customer data,” Mbhamali said. Furthermore, while banks are legally obliged to comply with ERS requests, they must also maintain audit trails, accountability and safeguards against misuse. This dual responsibility, he noted, builds confidence in the financial system.
Mbhamali pointed out that privacy is not a luxury but a constitutional right. Section 22 of the Constitution protects against arbitrary searches, ensuring that tax enforcement remains proportionate and lawful. This means that while ERS can request information, it cannot treat access to customer data as ownership.
“Eswatini is demonstrating how a country can balance tax enforcement with privacy protections. Citizens can trust that their financial information is not being turned into public property, but is handled within strict legal boundaries,” he said.
