SACU receipts rise to E5.9 billion as tax collections increase in Eswatini

The government of Eswatini collected E5.9 billion in Southern African Customs Union (SACU) revenue during the first half of the 2026/27 financial year. This represents an increase from the E5.2 billion recorded during the corresponding period last year. According to the Ministry of Finance’s Mid-Year Budget Review Statement, SACU receipts play a significant role in government revenue. However, their unpredictable nature remains a concern for fiscal stability.

The Ministry of Finance noted that SACU revenues are determined by external factors, making them difficult to predict. This exposes the country’s finances to potential fluctuations. For the full 2026/27 financial year, SACU receipts are projected to reach E11.7 billion. This is slightly above the E10.4 billion recorded in the previous financial year. The ministry monitors these revenues closely to ensure effective budget management.

Income tax remains the largest contributor to domestic revenue collection in Eswatini. Company tax, Pay As You Earn (PAYE), graded tax, and other income tax collections amounted to E4.7 billion at mid-year. This represented 47 per cent of the annual revenue target and an improvement from the E4.3 billion collected during the same period in the 2025/26 financial year. The ministry reported that income tax is a crucial component of domestic revenue.

Total income tax collections are projected to reach E9.9 billion by the end of the current financial year. However, company tax collections recorded a decline, standing at E992 million during the first half of the financial year. This compares to E1.2 billion in the corresponding period last year. The amount represents 44 per cent of the annual company tax target of E2.3 billion.

In contrast, individual tax collections through PAYE registered significant growth. They reached E3.2 billion at mid-year against E2.5 billion collected during the same period last financial year. This represents an increase of E700 million and accounts for 48 per cent of the projected annual PAYE collection of E6.6 billion. The growth in PAYE collections is a positive indicator for domestic revenue.

Taxes on goods and services also remain an important source of domestic revenue, ranking as the second-largest contributor. Value Added Tax (VAT) accounts for the largest share within this category. VAT collections reached E2.8 billion at the half-year mark. According to the ministry, this represented 46 per cent of the projected annual VAT revenue of E6 billion.

The government had collected E142 million in non-tax revenue by the end of the first half of the financial year. The Ministry of Finance continues to monitor revenue collections closely. The SACU receipts and domestic revenue performance will be crucial in determining the country’s fiscal stability and budget implementation for the 2026/27 financial year.

Key points

• SACU receipts increased to E5.9 billion in the first half of 2026/27 financial year.
• Income tax remains the largest contributor to domestic revenue collection.
• Company tax collections declined, while PAYE collections showed significant growth.