The Eswatini Revenue Service (ERS) exceeded its revenue collection target for the 2024/25 financial year, collecting E14.6 billion against a target of E14.5 billion, a 12.2 percent year-over-year increase that reaffirms the institution’s growing efficiency in domestic revenue mobilization.
According to the ERS Integrated Annual Report for 2024/25, the performance translates into an additional E1.58 billion compared with the previous fiscal year, despite a challenging global and regional economic environment marked by subdued growth, geopolitical tensions, and trade disruptions.
The strong revenue outcome pushed Eswatini’s domestic tax-to-GDP ratio to 16.7 percent, up from 15.9 percent in 2023/24, reflecting improved tax administration efficiency and higher compliance.
ERS Board Chairperson, David Dlamini, attributed the performance to the organisation’s ongoing transformation agenda, which focuses on digitalisation, service excellence and stronger stakeholder partnerships.
“I am happy to report that the organization once again exceeded its revenue target, collecting E14.612 billion against a target of E14.556 billion,” said Dlamini. “This remarkable performance is a testament to the tireless efforts of our staff and the continued support of our stakeholders.”
He noted that ERS remains committed to transitioning from a traditional enforcement-driven authority to a client-centered service organization. This shift is already yielding positive results in both revenue outcomes and taxpayer satisfaction.
Meanwhile, ERS Commissioner General, Brightwell Nkambule, said targeted revenue mobilization initiatives drove revenue growth, strengthened enforcement measures, and improved service delivery enabled by digital platforms.
“During this fiscal year, ERS achieved 12.2 percent growth in revenue collections, supported by enhanced enforcement efforts and client-centric service innovations,” Nkambule said. “This performance demonstrates our resilience and ability to deliver results even in constrained economic conditions.”
Nkambule added that the cost of collecting revenue fell to a historic low of 3.34 cents per Lilangeni, down from 3.71 cents the previous year, underscoring improved operational efficiency and cost containment.
VAT & Personal Income Tax Highest Contributors
Value Added Tax (VAT), Company Income Tax and Other Income Taxes recorded strong performances during the year, while Personal Income Tax and selected excise categories showed moderate growth but remained below target due to broader economic pressures.
“The contribution of each tax type to total revenue remained largely similar to proportions observed in previous years. In 2024/25, Personal Income Tax (PIT) and Value Added Tax (VAT) were the largest contributors to revenue, accounting for 34.83% and 34.71%, respectively. Other notable contributions to total revenue were Company Income Tax (CIT), Other Income Taxes (OIT), which include taxes on non-residents and taxes on dividends, and Fuel Tax. These tax types accounted for 13.94%, 6.54% and 9.19% of total revenue respectively in 2024/25,” the report notes.
The report further indicates that voluntary compliance improved to 70.5 per cent, supported by taxpayer education campaigns, digital tools and enhanced client engagement strategies.
ERS’ digital transformation agenda, anchored in the 2024–2027 Strategic Plan themed “Digitalised and Data Driven; With Our Partners,” also played a central role in the improved performance. Key milestones during the year included the go-live of the Oracle Revenue Management and Billing System, rollout of the Automated Contact Centre, and expansion of digital payment channels.
As the institution looks ahead, Nkambule reaffirmed ERS’s commitment to its long-term vision of 100 per cent voluntary compliance, improved trade facilitation, and sustainable revenue growth to support national development.
“We remain focused on delivering world-class revenue and customs services that contribute meaningfully to the economic growth and fiscal stability of the Kingdom of Eswatini,” he said.