By: Nkosiyabusa Nsibande
The Ministry of Finance has initiated a comprehensive review of key fiscal and revenue legislation through a three-day engagement with Parliament’s Finance Committee, signaling the government’s intention to strengthen revenue mobilization, improve tax administration, and modernize public finance management amid growing fiscal pressures.
The engagement covered proposed amendments to the Customs and Excise Act, Eswatini Revenue Service Act, Value Added Tax Act, Income Tax Act, Fuel Levy Act, and the Members of Parliament and Designated Office Bearers Pension Fund Act, alongside related regulations and statutory notices. Collectively, these laws form the backbone of the country’s revenue collection and public finance framework, governing how taxes are administered, customs duties are collected, and public resources are managed.
The review comes at a time when the government is seeking to reinforce fiscal sustainability against a backdrop of rising expenditure demands and persistent budgetary pressures. According to the 2026/27 national budget, government expenditure is projected at E36.92 billion against expected revenue and grants of E31.90 billion, resulting in a fiscal deficit of approximately E5.02 billion. This gap has heightened the importance of improving domestic revenue generation and strengthening the efficiency of revenue administration.
Although details of the proposed amendments have not yet been made public, the scope of the legislation under review suggests a broad effort to modernize the country’s tax and customs architecture. The measures are expected to address emerging economic realities, improve compliance mechanisms, and ensure that revenue legislation remains aligned with evolving business practices and international standards.
Particular attention is likely to focus on the Customs and Excise Act, which plays a critical role in regulating cross-border trade and collecting customs duties. As regional trade becomes increasingly integrated and digitalized, customs administrations across Southern Africa have been under pressure to modernize enforcement systems, improve border efficiency, and curb revenue leakages associated with illicit trade and under-declaration of goods. Any reforms in this area could have significant implications for importers, exporters, and logistics operators.
Reviewing the Eswatini Revenue Service Act is equally significant. As the institution responsible for collecting taxes and customs revenue on behalf of the government, the Eswatini Revenue Service remains central to efforts aimed at improving tax compliance and broadening the country’s revenue base. Amendments to its governing legislation could strengthen administrative powers, enhance enforcement capabilities, and support adopting more advanced revenue collection technologies.
Changes to the Value Added Tax Act and Income Tax Act are expected to attract particular attention from the business community. These laws underpin the country’s domestic tax system and directly influence corporate taxation, individual tax obligations, and consumption-based taxation. As the government seeks to increase revenue without undermining economic activity, policymakers face the challenge of balancing revenue mobilization objectives with the need to maintain a competitive and investment-friendly business environment.
The inclusion of the Fuel Levy Act in the review process points to the government’s interest in ensuring that fuel-related levies continue to provide a reliable source of revenue while remaining responsive to developments within the transport and energy sectors. Fuel levies have traditionally served as an important fiscal instrument because of their relatively predictable revenue-generating capacity.
Meanwhile, reviewing the Members of Parliament and Designated Office Bearers’ Pension Fund Act reflects a broader focus on long-term fiscal sustainability. Pension obligations represent recurring liabilities for the government, making effective management of public sector pension arrangements an important component of prudent fiscal planning.
Beyond the technical legal amendments, the parliamentary engagement highlights the government’s broader strategy of strengthening institutional frameworks that support revenue collection and public financial management. Rather than relying on new taxes or expenditure reductions, policymakers appear to be focusing on improving the effectiveness systems and ensuring that legislative frameworks remain fit for purpose in a changing economic environment.
For investors, businesses, and taxpayers, the outcome of the review will be closely monitored. Amendments affecting customs procedures, tax administration, and revenue enforcement have the potential to influence compliance costs, investment decisions, and the overall ease of doing business. At the same time, a stronger and more efficient revenue framework could contribute to improved fiscal stability, providing the government with greater capacity to fund national development priorities and support long-term economic growth.
As deliberations continue, the legislative reform process is likely to provide a clearer indication of how the government intends to strengthen public finances while navigating the competing demands of economic growth, revenue mobilization, and fiscal sustainability.
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