Edward Groening, Eswatini Revenue Service, discusses research partnership with ICTD

The ICTD’s research and engagement in Eswatini over the last few years has contributed to a significant transformation in the strategy of the tax administration. The research collaboration, which began with investigating the issue of nil-filers , evolved into a nudging experiment and a taxpayer survey . This research revealed that perceptions of the revenue authority were poor, and that the imposition of harsh penalties were damaging tax morale and compliance. The results highlighted the importance of good service as well as facilitation and equity. This led to a shift in the administration’s approach, where mistakes in tax declarations are now treated as an opportunity for helping and educating the taxpayer and to build trust between the service and the taxpayer. Enforcement action is treated as a last resort for repeat offenders instead of it being the only measure to enforce compliance. The changes went further than the approach to enforcement. In April 2023, the organisation rebranded, changing its name from the Eswatini Revenue Authority to the Eswatini Revenue Service and adopting a new logo. Of the collaboration with ICTD, Edward Groening, the Head of Business Strategy and Development said, “What we found in the research that was amazing was that as much as taxpayers do value how their money was spent, it was more how we treated them that mattered for compliance...That’s where research becomes very important, because what we think is not always true - that’s where the work we’ve done with ICTD has become important in shaping not only the research function but the decisions of the entire organisation.”
See the research:
"Nil-Filing in Eswatini: Should the Revenue Administration be Concerned?" www.ictd.ac/pu...
"To File or Not To File? Another Dimension of Non-Compliance: The Eswatini Taxpayer Survey" www.ictd.ac/pu...
"How to Best Nudge Taxpayers? The Impact of a Tailored Letter Experiment in Eswatini" www.ictd.ac/pu...