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The Eswatini Revenue Services (ERS) is on track to set a new revenue collection record of E16.5 billion for the 2025/26 fiscal year.
This projection marks a significant increase from the E14.5 billion collected in 2024/25, thanks to a strategic focus on broadening the tax base rather than raising taxes.
Minister of Finance Neal Rijkenberg, during his budget speech at Parliament on Friday, credited the increase to targeted reforms and improved compliance measures.
“This growth is not driven by higher tax rates but by ensuring a more inclusive tax base,” he explained.
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Economists have applauded this approach, describing it as a sustainable way to enhance revenue while encouraging economic growth.
Commenting on the development, economist Mkhosi Thwala said, broadening the tax base is the right direction for Eswatini.
He further said it reduces the burden on individual taxpayers and businesses while ensuring that more sectors contribute fairly to the national economy.
“This approach is business-friendly and minimizes economic strain,” said Thwala.
Thwala further pointed out that improved tax compliance and efficient collection mechanisms were key contributors to the ERS’s success.
“The increase in projected revenue indicates that more people and businesses are entering the formal economy, which is a positive sign for the country’s long-term economic health.” he said
In addition to the projected revenue boost, the government’s fiscal prudence and improved credit rating are expected to create a more conducive environment for business and investment.
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With revenue targets rising without increasing tax rates, analysts believe this signals a shift toward a more robust and stable economy.
“This is a win-win strategy,” Thwala concluded. “The government collects more revenue, while the economy continues to grow without placing undue pressure on taxpayers.”
