- Program to be rolled out soon by the Eswatini Revenue Service (ERS), and will provide relief on interest and penalties.
- ERS, however, warns that they will not absolve any taxpayer from paying the principal tax debt.
- Meanwhile, the tax revenue target set by the government in the year 2022-23 stands at E12.3 billion
Photo Credit: https://www.gov.sz/
By Ntokozo Nkambule
The Eswatini Revenue Service (ERS) appears to be taking serious measures in addressing the frustration of taxpayers in the country. The Minister of Finance, Neal Rijkenberg, who was one of the speakers during the ERS rebranding launch says they are working tirelessly on a programme aimed at assisting taxpayers who find themselves in deep debt. The Minister said the programme will provide relief on interest and penalties, taking into account different taxpayers’ circumstances.
Rijkenberg, however, cautioned that the tax relief programme to be rolled out is not aimed at absolving taxpayers from paying their principal debt. “Whilst we are empathetic with those in difficulties, I need to warn though, that as a Ministry, we cannot absolve any taxpayer from paying the principal tax debt. I must emphasize that we are committed to easing the pressure that taxpayers face, and we encourage taxpayers to take advantage of the programme as soon as the ERS announces it” he said. Rijkenberg said as a Ministry they were aware that a number of taxpayers have been struggling with their tax debts, particularly due to escalating interest and penalties, especially during the COVID-19 pandemic.
The Minister further advised the ERS to take a leaf from other revenue administrators across the globe who use certain initiatives, such as publicly recognizing voluntary taxpayers in an effort to improve voluntary compliance. It is worth mentioning that earlier this month the ERS announced a debt relief programme to assist taxpayers who were in deep debt. The revenue administrator offered taxpayers an opportunity to pay off their debt over twelve months, but with the condition of a 20% deposit on the amount owed. Additionally, Rijkenberg noted that meeting their tax target is important, but they should also take into account the plight of taxpayers. “Over the past years we have noted with concern the reality that the ERS has not met the revenue target, as set by the government; as you would know by now, the revenue target that has been set by the government in the year 2022-23 stands at around E12.3 billion. As a country, we need to strengthen our domestic revenue mobilization initiatives, if we are to be self-sustainable. However, we also appreciate that as much as we expect the ERS to mobilize such revenue, we are sensitive to the different difficult circumstances faced by taxpayers” he noted.
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