The collapse of Southern African CustomsUnion (SACU) revenue in 2009 has caused the Government toconsider enhancing new sources of revenue in earnest tosustain its development policies.Existing plans that wereprepared more than 5 years ago to introduce the Value-AddedTax (VAT) and create a new Revenue Authority (RA) focused onimproved compliance are therefore more relevant than ever.This initial preparation provides ample room to rapidlyimprove both the design of taxes and fees and taxadministration to ensure they are in line with bothSwaziland's unique policy context and sound economicprinciples.These principles include: (i) policy andadministration harmonization with South Africa so thatinvestors view both countries as offering the same taxbenefits and to facilitate the seamless launch of the RAwith the benefit of the necessary support from (and partialintegration with) South Africa's operations; (ii) theability to implement reform rapidly given the fiscalemergency; and (iii) the need for simple and resilientpolicy and administrative designsthat are able to copewith limited administrative capacity and a history ofout-of-control spending.
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