Todorov leaned forward, his tone warm. “Hello Mr. Brightwell, welcome to Serbia and welcome to Data Tech International.” Mr. Nkambule returned the greeting with measured courtesy. “Thank you and good morning, Goran. Thank you for welcoming me here at DTI in Serbia.”

The conversation that followed was not about technology for its own sake. It was about the stubborn realities that had long limited Eswatini’s revenue potential and the path now opening beyond them.

5 Key Conclusions From Brightwell Nkambule Interview

1. TaxCore Turns Compliance into the Path of Least Resistance. The system was chosen not only to detect underreporting and the informal economy, but to make compliance easier and cheaper than non-compliance, especially for smaller businesses previously burdened by high costs of accountants and complex returns.
2. Digital Foundations Were Already Delivering Results. Before TaxCore, earlier digital tools had already lifted voluntary compliance from 60% to 72%, raised the Net Promoter Score to 75%, and improved the tax-to-GDP ratio from 15.7% to 16.5%, proving technology works when it genuinely reduces friction.
3. Real-Time Reporting Solves the High-Volume Retail Problem. Previous VAT reporting methods collapsed under the weight of thousands of daily transactions. TaxCore automatically captures and transmits every business-to-consumer sale as it happens, eliminating the need for manual schedules or daily summaries.
4. It Closes Fraud Loopholes and Empowers Citizens. The biggest leakage occurred in cash-heavy business-to-consumer sales and “cooked” invoices linked to under-declaration at the border. TaxCore captures every transaction at source and allows consumers to verify that the VAT they paid truly reaches the revenue service.
5. The Ultimate Goal Is Compliance by Default. Commissioner General Nkambule’s vision mirrors Pay-As-You-Earn: taxpayers should focus entirely on growing their businesses while technology silently handles tax obligations. Higher compliance strengthens government finances, improves public services, reduces poverty, and creates jobs, making the real winners the citizens of Eswatini.

The Weight of What Went Unseen

Before TaxCore, the challenges were familiar and persistent. Underreporting of sales was widespread. Entire segments of the informal economy simply did not report at all. For smaller businesses, the cost of compliance, accountants, consultants, complex returns, often outweighed the perceived benefit of staying inside the system.

“We had a whole range of issues,” Brightwell Nkambule explained. “One of them was underreporting of sales, and then the other was no reporting at all, this is what we sometimes call the informal economy. We decided we must opt for solutions that will reduce the risk of underreporting and also make it very easy for taxpayers that may be in the informal economy to comply.”

The solution had to do more than catch non-compliance. It had to lower the barrier so that compliance became the path of least resistance.

Progress Already Measured

Eswatini’s Commissioner General did not arrive empty-handed. Under his leadership, and building on years of earlier work, the Eswatini Revenue Service had already introduced a range of digital tools aimed at making voluntary compliance easier. The results were tangible.

Voluntary compliance, measured by on-time filing and payment, had risen from around 60 percent in 2022 to 72 percent in the latest financial year. The Net Promoter Score, tracking how willing taxpayers were to recommend the service, had climbed to 75 percent. The tax-to-GDP ratio had improved from roughly 15.7 percent to 16.5 percent.

“Technological solutions actually have an impact,” Nkambule noted. The foundations were in place. What was still missing was a system capable of capturing the full flow of transactions, especially in the high-volume retail sector that had proven hardest to police.

Brightwell Nkambule: The Game Changer Arrives

TaxCore is still early in its implementation, still the ERS head already sees it as transformative. He traced the evolution of VAT reporting in Eswatini. Introduced in 2012 with a simple one-line return, the system soon revealed serious underreporting. In 2022 the authority introduced invoice schedules, which improved performance, until the sheer volume of daily transactions overwhelmed retailers. A compromise was reached: daily sales totals instead of line-by-line detail. The figures began slipping again.

“TaxCore will come in and say that the problem of voluminous transactions has been solved,” Nkambule said, “because this solution will automatically report the transactions to us as and when they occur. So, it’s going to be a game changer.”

The wholesale and retail sector currently sits below expected thresholds. The VAT-to-turnover ratio, which should sit between 1 and 3 percent, has in places fallen below zero, a sector effectively operating on net refunds because outputs are not fully declared. Real-time transmission changes the equation. Every business-to-business and business-to-consumer transaction becomes visible. The technology does the reporting. The taxpayer simply runs the business.

For smaller and informal operators, the barrier drops even further. A one-time investment in a simple device or free software on an existing phone or computer is enough. After that, the system records, stores, and transmits. “There’s nothing to submit anymore,” he observed. “The technology will be doing all the work.”

Closing the Gaps That Fraud Exploits

The most stubborn leak has been business-to-consumer sales. Retailers could under-declare or omit cash transactions because the revenue authority had no independent view. Some went further, linking under-declaration at the border with under-declaration at the point of sale, “cooking” the invoices to match.

TaxCore severs that chain. Every transaction is captured at source. Consumers themselves can verify that the VAT they paid has reached the tax office. Nkambule is confident many will. “A big portion of our citizens are responsible. They want to contribute to the development of the country… We see them stepping forward to ensure that this VAT that they pay ends up with the tax office.”

A Message of Ease, Not Fear

Asked what message he would send home to taxpayers in Eswatini after seeing the system working in Serbia and Republika Srpska, Commissioner General was clear. The solution benefits the country. The VAT citizens already pay will finally reach the revenue service. The cost of compliance will fall sharply after a modest upfront step. The system, once running, is low maintenance, “much like our mobile phones. Once you have a mobile phone, all you need to take care of is the battery.”

For the smallest businesses, free applications that run on existing phones or computers remove even that modest barrier. Compliance becomes accessible rather than burdensome.

Brightwell Nkambule Sees the Larger Picture

In Eswatini, the next chapter is already being written, not in threats or heavier audits, but in a silent promise: that honest businesses will one day spend almost no time thinking about tax at all. What excites him most is not the technology itself, but what it unlocks. Higher compliance strengthens government finances. Stronger finances improve public services. Better services accelerate national development, reduce poverty, and create jobs.

He draws a parallel with Pay-As-You-Earn. Employees do not file monthly; the system handles compliance by default. TaxCore points toward the same destination for VAT and broader reporting: taxpayers concentrate on growing their businesses while the technology quietly does the rest.

“The country develops, poverty is reduced, jobs are increased, everyone is happy after that,” Nkambule concluded. The technology will simply make compliance the default. And when that happens, the real beneficiaries will not be the revenue service alone, but the citizens whose development depends on every tax that finally arrives where it belongs.

The post Brightwell Nkambule: Taxcore Is a Breakthrough appeared first on Dti.

Throughout the visit, Mr. Nkambule engaged directly with DTI’s engineering, product, implementation and management teams, reviewing the company’s flagship TaxCore® platform that is currently being implemented in Eswatini. Rather than focusing solely on product demonstrations, the programme provided detailed technical and operational discussions on the architecture, security model, implementation methodology, vendor accreditation, taxpayer onboarding and long-term operational support.

Mr. Nkambule arrived well prepared and engaged deeply with every aspect of the platform. Together with DTI specialists, he explored how TaxCore manages real-time invoice validation, maintains uninterrupted operations in diverse connectivity environments, and provides tax administrations with accurate, reliable and timely fiscal data. The discussions focused on practical scenarios faced by revenue authorities and the operational measures required to ensure a successful nationwide rollout.

Beyond the technical programme, the visit reinforced the partnership between ERS and DTI. Open discussions on Eswatini’s strategic objectives, implementation priorities and future digital transformation initiatives fostered a shared understanding of the challenges ahead and strengthened the mutual commitment to delivering a modern, resilient and sustainable fiscalization ecosystem for the Kingdom of Eswatini.

Sprint Reviews During the TaxCore Reference Visit

The TaxCore reference visit gained real momentum when Nkambule participated in three Sprint Reviews. He joined two development teams and one data team as they assessed progress and planned upcoming improvements. Engineers presented recent enhancements with clarity and genuine enthusiasm.

Additionally, the sessions offered a transparent view of the work needed to evolve TaxCore® continuously. Team members openly discussed challenges they had overcome and demonstrated new features aimed at greater reliability. Observers appreciated the thoughtful balance between bold innovation and system stability.

Meanwhile, Nkambule posed insightful questions that enriched the discussions. His active involvement brought fresh perspectives and highlighted the importance of learning directly from the people who design and maintain the platform. The experience left everyone with a strong appreciation for steady, purposeful progress.

Operational Insights in Banja Luka

The group then travelled to Banja Luka, where the TaxCore reference visit shifted focus toward real-world results. Gordana Kovačević, the head of DTI’s local office, presented alongside officials from the Tax Administration of the Republic of Srpska. She provided compelling evidence of TaxCore®’s positive long-term impact on daily operations.

Subsequently, her presentation emphasized measurable gains in processing speed and significant reductions in errors. Real examples from active users demonstrated the platform’s ability to produce consistent, reliable outcomes over time. Consequently, the talk encouraged lively discussion among participants who explored how these solutions might apply in different national settings.

The session clearly showed that careful technology adoption delivers lasting value to both tax authorities and the businesses they serve.

Market Approaches During the TaxCore Reference Visit

A stop at Teron added another practical layer to the TaxCore reference visit. Mr. Nkambule explored the ecosystem of point-of-sale devices and the competitive vendors behind them. He observed how businesses benefit from genuine choice when selecting tools that best fit their needs.

Therefore, the visit to Teron highlighted the strengths of an open marketplace. Multiple suppliers compete to offer reliable solutions, helping authorities avoid rigid, one-size-fits-all mandates. This approach proved especially relevant in economies where small businesses play a central role. Thus, Nkambule gained useful understanding of how flexible device integration supports broader tax systems. The experience deepened his view of complete digital tax ecosystems.

Going Far and Beyond

We feel that the five days spent together in the region strengthened ties between the Eswatini Revenue Service and Data Tech International. Both sides left with accentuated commitment to current collaboration and knowledge sharing. The visit also signalled broader international interest in solutions that have already proven their worth.

While progress rarely follows a straight line, the Banja Luka discussions showed the rewards of measured implementation paired with proper training. Further, the entire trip combined technical depth with operational wisdom and market understanding. And yes, we see that this kind of reference visit offers one compelling model that should be followed in the future.

The post Eswatini Completes TaxCore Reference Visit appeared first on Dti.

In 2020, as Covid-19 slammed borders shut and governments slashed budgets, Amosa’s team at Samoa’s Ministry of Customs and Revenue launched the Tax Invoice Monitoring System (TIMS) built on DTI’s TaxCore. Many doubted whether digital fiscalization could thrive in a cash-based economy. Today, the numbers tell a different tale: revenue collection has nearly doubled.

Todorov leaned forward, his tone warm yet incisive. “Theresa, welcome to Serbia. We are so pleased to have you here.” He wanted to revisit the heart of the matter, the revenue impact. “You implemented TIMS right at the outbreak of Covid-19. You mentioned it had a measurable effect. Was that impact immediate, or did it build over time? When exactly did you begin to see revenue grow?”

Amosa answered without hesitation, her voice steady with hard-won insight. “We launched in 2020 amid economic uncertainty and fiscal pressure. In terms of revenue growth, we started noticing it around two to three years after implementation.” But something far more telling happened first.

5 Conclusions on Samoa Tax Revenue Growth

1. Deterrence Beats Enforcement: Simply knowing the TIMS powered by TaxCore was watching changed taxpayer behaviour immediately. Samoa’s Parliament cut revenue targets by 10%, yet collections dropped only 1% in the first year of COVID, proving anticipation of visibility drives compliance more powerfully than penalties.
2. People First, Technology Second: With over 6,000 taxpayers and just ten auditors, success came from cultural sensitivity. Amosa’s team used everyday Samoan language, offered free smartphone POS apps, and personally advised businesses before purchases, turning confusion into cooperation.
3. Flexibility Wins Vendor Challenges Instead of rushing penalties, the ministry showed patience with slow or expensive vendors. Creative workarounds, like manual tablet loading for major taxpayers, kept businesses compliant while DTI helped ensure fair pricing.
4. Real-Time Data Transforms Auditing: TIMS eliminated months-long manual checks. Auditors now compare live TaxCore data against declarations, quickly catch under-reporting, calculate liabilities for non-filers, and shift the burden of proof to taxpayers.
5. Cultural Understanding Drives Lasting Success: Amosa wouldn’t change a thing: respecting Samoa’s cash-based culture and close-knit community was essential. The result? Nearly doubled revenue in five years, with plans for pre-filled returns and full automation built on strong public-private trust.

The Power of Anticipation

Before the numbers climbed, a subtle shift transformed behaviour. Taxpayers realized their sales would now stand visible and monitored. That awareness alone changed how they declared income.

“There was a behavioural change, a deterrence effect,” Amosa explained. “Just the taxpayers’ anticipation that their sales would be more visible really changed their behaviour in terms of declaring the right amount of sales.”

Samoa’s Parliament had braced for disaster, cutting the ministry’s revenue targets by 10 percent. Instead, core taxes collected by Inland Revenue Services fell by only one percent. Amosa’s eyes lit up with quiet wonder as she recalled the moment. “Can you believe that? The system had not even needed to catch anyone. The mere knowledge that it was watching proved enough.”

This early deterrence bought precious time. Real, sustained Samoa tax revenue growth followed. By the five-year mark, the ministry collected nearly double what it had before TIMS. The technology worked, but only because people embraced it.

The Human Side of Digital Transformation

Seasoned tax officials know the truth: technology is never the hardest part, people are. Samoa counts more than 6,000 taxpayers, but its audit team numbers barely over ten. When TIMS went live, business owners felt bewildered. Would they need expensive new equipment? What if their point-of-sale systems failed? What if they lacked reliable internet?

Amosa’s team responded with pragmatism and deep cultural understanding. They translated complicated requirements into clear, everyday Samoan. They created awareness materials that matched accredited solutions to specific industries. Most importantly, they invited taxpayers to talk before buying anything.

“The last thing we need is a wrong path,” Amosa said. Her team even offered a free POS application that worked on smartphones and tablets.

Todorov listened with clear admiration. “You really went the distance to consult taxpayers about what they need to do. In many other countries, especially with larger taxpayer bases, this is not a practice tax authorities would follow.”

Amosa nodded. “We always encourage them, before they actually purchase an EFD, to come and talk to us to make sure they are on the right path.” She smiled at the memory. “We translated it into simple everyday language using our own Samoan language just to explain to them that it’s nothing completely new. To them, it’s all about finding the right solution.”

In a close-knit island nation where relationships matter, this personal touch proved fundamental. It turned potential resistance into cooperation.

Overcoming the Vendor Bottleneck

Taxpayers formed only half the challenge. Vendors supplying electronic fiscal devices created another persistent hurdle. Some quoted “ridiculously high prices” for accreditation. Others moved slowly, especially when Samoa represented just one small client.

Lacking in-house developers, the ministry relied on DTI’s expertise to judge whether costs were fair. One memorable case involved one of Samoa’s top ten taxpayers. Their unique system had no other users in the country, and the overseas vendor showed little urgency to certify compliance.

Amosa found a practical solution. The business installed tablets running the web invoicing app and loaded products manually while awaiting full integration. “We managed to load their products onto these tablets,” she recalled. “The tablets were provided by the taxpayer, so that was evidence that they were willing to comply. It’s just that the vendor support was causing the delay.”

Double entry created temporary inconvenience, but it kept the business compliant. When Todorov asked about possible collusion between taxpayers and vendors, Amosa shook her head firmly. “No, I wouldn’t say so. I think in a lot of the cases, it came down to delays from the vendors.”

The ministry chose patience over punishment. “We were actually very flexible,” Amosa noted. “Yes, there are penalties in the legislation, but we were not quick to apply these penalties because we wanted to first make sure that we exhausted all avenues to facilitate compliance.”

Samoa Tax Revenue Growth: Data That Sees What Eyes Cannot

Before TIMS, auditors worked largely in the dark. Self-assessed declarations often took months, or more than a year, to verify. Now, evidence flows in real time. At the end of each VAT/GST period, the ministry runs a tax-charged report on TaxCore and compares it directly against taxpayer declarations.

“There has been a lot of cases of under-reporting,” Amosa admitted candidly. Discrepancies emerged quickly. At first, officials simply asked businesses to pay the difference. When patterns repeated, penalties followed.

Todorov observed how the system removed the need for physical visits. Amosa agreed wholeheartedly. “Now, with TIMS, our team and our staff don’t need to go out and try to look for it; the evidence is right there. The responsibility falls on the taxpayer to come and explain this discrepancy.”

The system also tackled non-filers elegantly. Previously, officials made default assessments by comparing similar businesses. Today, data arrives directly from transactions as they happen. “Even if they don’t declare their tax returns,” Amosa explained, “because you’ve got that data transmitted directly from the source… you can make immediate calculations on their tax liability.”

The Public Becomes Partner

No system is entirely cheat-proof. Fraudulent QR codes sometimes appeared as “weird looking characters” on receipts. The ministry deployed mystery shoppers and launched television campaigns to raise awareness.

Most powerfully, ordinary citizens began reporting violations. “We actually have members of the general public reporting to us,” Amosa said with evident satisfaction, “saying, ‘I went to this store, I know they’re supposed to give me a physical invoice, but I got nothing instead.’”

Officials considered whistleblower rewards but paused due to conflict-of-interest concerns in such a small administration. They continue seeking the right approach.

Samoa Tax Revenue Growth: A Future of Automation and Understanding

Six years on, the journey continues. The ministry now pursues deeper integration between TaxCore and its core revenue management system. The vision includes pre-filled returns, automated calculations, and far less manual work.

“We want to automate as much as possible and reduce the risk of human error,” Amosa said. “We want to free up the staff from having to do that manual work and for them to focus more on value-added work, just analysing the data and identifying case studies.”

Todorov asked whether the ultimate aim involved presenting taxpayers with a clear bill of sales and purchases. “Yes!” Amosa replied enthusiastically. She emphasised alignment with broader goals of public-private partnership and cultural sensitivity.

When asked if she would change anything about the rollout, Amosa remained resolute. “I wouldn’t do anything different. When you’re introducing fiscalization to a small island nation that was highly cash-based, you have to really factor in the culture of the taxpayers.”

Todorov concluded with genuine warmth, gesturing around the Belgrade headquarters that had supported this transformation. “Theresa, it’s been a wonderful journey for these past six years. We have supported your ministry throughout all this time, and we are looking forward to the future, to get to the point where you become maybe one of the first world’s fully automated tax administrations.”

Amosa smiled. “The challenge is to collect the good data. You have the good data. Now we need all the other things that are maybe expensive but worth it.”

Samoa’s fiscal innovation continues, yet its lessons already resonate far beyond the Pacific. Advanced technology opens the door, but human understanding, flexibility, patience, and cultural respect, ushers people through it. In an age of ambitious digital promises, this small island nation has shown that lasting compliance grows not from threats, but from trust. The Pacific may lie far away, but its example now travels the world.

The post Samoa Tax Revenue Growth Nearly Doubled appeared first on Dti.

The foundation of this collaboration is our proven experience and results over years of work in fiscal modernization. DTI has consistently delivered its solution that enhanced transparency and reduced the compliance burden on businesses. Eswatini now stands to become a benchmark that other African nations will have an opportunity to study closely. We approach this project with humility, knowing that lasting success depends on close teamwork, not just good technology. Particular thanks go to ERS leadership, whose bold vision and steady commitment made this kick-off possible.

System implementation will follow a structured, phased approach. At first, the current Inception phase refines the technical blueprint and legal framework. Initial Capacity Building installs the system in a staging environment and trains the first user cohorts. Full Operational Capability activates the complete platform in production. Final Acceptance delivers a fully validated, independently verified solution. Equally important, the focus during each stage remains on practical readiness: secure configuration, seamless integration with existing systems, comprehensive staff training, and documentation that makes the system approachable for tax officers and businesses alike.

Key Takeaways

1. A Continental First: TaxCore’s deployment in Eswatini marks the platform’s first full implementation on the African continent, positioning the country as a potential model for tax modernization across the region.

2. Tamper-Proof by Design: Every transaction is certified at the point of sale through an electronic signature generated by a secure element that operates independently of the business invoicing system. This separation is what makes the system structurally resistant to manipulation..

3. Verification for Everyone: Compliance checks require no specialized knowledge or equipment. Any inspector can verify a document on the spot, while online verification services give both authorities and the general public the ability to authenticate records at any time.

4. Built for a Fair Market: Compliance requirements are fully transparent, allowing any technology supplier to build a compatible solution. Businesses of all sizes and sectors are accommodated, and no single vendor holds a structural advantage.

5. Real Revenue Impact: Eswatini faces a meaningful tax gap rooted in under-declared transactions. Comparable deployments have delivered VAT collection increases of 8% to 48% in targeted sectors. With every sale independently certified at the source, under-reporting becomes structurally difficult rather than merely discouraged.

Eswatini Implements TaxCore: From Years of Vision to Today’s Launch

Interest in modern VAT monitoring and fiscalization in Eswatini has been building for years. Moreover, the Eswatini Revenue Service has shown consistent vision and determination, steadily advancing toward a modern, transparent tax system through careful public procurement. Discussions began back in 2015–2016 and evolved through several formal Expressions of Interest and tender initiatives focused on Electronic Fiscal Devices and broader digital tax monitoring solutions.

Henceforth, this clear and persistent policy direction reached an important milestone with the Request for Proposals issued in May 2025. Data Tech International actively participated in the competitive evaluation process, which included detailed technical assessments and site visits to live TaxCore deployments in other countries. Following this thorough and professional evaluation, DTI was selected as the successful bidder.

Today, that patient journey of preparation turns into reality. We are proud to begin the official implementation and deliver a solution that will bring real benefits to Eswatini.

TaxCore: Closing the Tax Gap in Real Time

At its essence, TaxCore functions as a real-time fiscal monitoring system built on one clear principle: every payment document must contain complete transactional data so the system can verify correct tax calculation and prevent any manipulation. A dedicated secure element, independent of the business invoicing system, achieves this by applying an electronic signature to every transaction at the moment it occurs. The separation of these two components is deliberate and fundamental. It ensures that no single party controls both the business logic and the integrity seal, which is what makes the system genuinely tamper-proof rather than merely compliant on paper.

Generally, this architecture does not impose a one-size-fits-all solution on businesses. The secure element and invoicing system can operate as separate products or as a fully integrated unit, and the system ensures that producing a certified document introduces no delay to normal business operations. Every document clearly identifies its issuer, and in business-to-business transactions, the system equally protects the identity of the purchasing party with an electronic signature, safeguarding both sides of the transaction from any unauthorized modification.

Deployments across Europe and the Pacific have produced consistent results, including higher voluntary compliance, reduced revenue leakage, and meaningful increases in tax collection without any change to tax rates. Eswatini will draw directly on those proven capabilities.

Inspection Without Bureaucracy

One of TaxCore’s defining strengths is how it handles verification. A tax inspector in the field does not need sophisticated technical knowledge or specialized equipment to confirm that a document is authentic. At this point, the integrity of any payment document can be checked immediately and on the spot, making routine compliance verification fast and practical. For deeper audits, authorized personnel follow a unified inspection method that extracts transaction data from the secure element, preferably in encrypted form, through a standardized process that works consistently across all businesses.

Beyond official inspection, verification services are available online and through multiple channels, so that both authorities and members of the public can authenticate documents at any time. The system makes electronic journal records accessible in human-readable form, either through the invoicing system or via a secure data collector, ensuring that transparency extends beyond those with technical expertise.

A Level Playing Field and a Better Experience

TaxCore is also designed with the broader market in mind. Compliance requirements are fully transparent, meaning any technology supplier can build a compatible solution and compete fairly. Furthermore, a wide variety of invoicing system models is supported to accommodate businesses of different sizes, sectors, and operational needs. The system does not favor any particular vendor or create barriers that concentrate the market.

For businesses and citizens, the day-to-day experience is straightforward: payment documents, whether printed or electronic, present tax information clearly and unambiguously to the customer. There is no fine print, no ambiguity about what was charged and why.

Eswatini Implements TaxCore: Why This Matters?

Eswatini currently faces a tax gap driven largely by under-declared transactions. TaxCore addresses this directly. Because the system certifies every sale at the source and signs it independently, it not only discourages under-reporting but makes it structurally difficult. At the same time, the system’s simplicity and accessibility make honest compliance the path of least resistance for businesses that want to operate cleanly.

The numbers from comparable deployments speak for themselves: jurisdictions implementing similar fiscalization platforms have recorded VAT collection increases of between 8% and 48% in targeted sectors, with broader improvements in tax-to-GDP ratios as digital tools widen the base and reduce administrative friction.

Finally, DTI is proud to support Eswatini on this path. We are confident that a successful implementation here will carry weight well beyond the country’s borders, and we intend to earn that outcome every step of the way.

The post Eswatini Implements TaxCore – Game Changer Arrives! appeared first on Dti.

The numbers are sobering but not yet catastrophic. On Tuesday the IMF released its latest World Economic Outlook. Global growth this year is now projected at 3.1%, down from the 3.4% that chief economist Pierre-Olivier Gourinchas had been ready to announce before hostilities erupted on February 28th. Oil flows through the Strait of Hormuz have fallen by about 13%, liquefied natural gas by 20%. Brent crude spiked to $120 a barrel before easing; diesel and jet-fuel shortages have rippled through supply chains all the way to the Pacific islands. Headline inflation is expected to rise to 4.4%, some 0.6 percentage points above January’s forecast. 

Growth Outlook Changed

“We were planning to upgrade growth for 2026 to 3.4%,” Mr Gourinchas told reporters, “if not for the war.” Nevertheless, he also pointed to a source of resilience the world lacked in the 1970s: far lower oil dependence, more renewables and nuclear power, and greater efficiency. “The global economy has become much more efficient in terms of how much it needs oil to produce GDP,” he said. Even so, the Fund warns that in adverse scenarios, prolonged high energy prices and unanchored inflation expectations, growth could slump to 2.5% or even 2%. 

The impact is strikingly uneven. The Middle East and Central Asia have seen their growth forecast slashed by half, to 1.9%. Saudi Arabia’s projection dropped 1.4 points to 3.1%. Emerging and developing economies, which are net oil importers in more than 80% of cases, will feel the pain almost twice as sharply as rich ones. Food-price spikes from higher fertiliser costs will hit the poorest hardest. China’s growth is trimmed to 4.4%; the euro area’s to 1.1%. America, a net energy exporter at the margin, still looks set for 2.3%, though American motorists are already grumbling at the pump. 

5 Key Takeaways 

1. Middle East war triggers a large, asymmetric supply shock. Oil flows fell 13% and LNG 20%, spiking energy and fertiliser prices, disrupting global supply chains, and lifting headline inflation to 4.4%. Net importers, especially emerging economies, are hit hardest. 
2. Global growth downgraded to 3.1% for 2026. The IMF cut its forecast from a planned 3.4% due to the conflict. In worse scenarios with prolonged high energy prices, growth could fall to 2.5% or even 2%. 
3. Impacts are sharply uneven. Middle East and Central Asia growth slashed to 1.9%. Over 80% of countries are net oil importers and will suffer nearly twice as much as advanced economies; low-income nations face steeper food prices. 
4. Policy must stay disciplined and targeted. Kristalina Georgieva rejected export controls and broad price caps. Central banks should “wait and see” while protecting credibility; fiscal support must be temporary, well-targeted, and focused on rebuilding buffers. Strong institutions are the best shock absorbers. 
5. Domestic revenue mobilization has become essential. With fiscal space squeezed by high debt, real-time systems like TaxCore® close indirect-tax gaps (VAT often 30–50% of budgets in emerging economies), boost stable revenue without rate hikes, reduce evasion, and strengthen resilience, exactly what the IMF recommends. 

Who Are the Ultimate Shock Absorbers 

Two days earlier, on April 9th, the IMF’s managing director delivered her curtain-raiser speech under the pointed title “Cushioning the Middle East War Shock”. In measured yet urgent tones she described a textbook negative supply shock: large, global and deeply asymmetric. Prices of energy, fertilisers and even obscure inputs such as helium for semiconductors have surged. Pacific island nations, sitting at the end of the longest supply chains on earth, are particularly exposed. 

The shock travels through three channels: direct price and supply effects, shifting inflation expectations (short-term ones have risen, long-term ones mercifully remain anchored), and tighter financial conditions. Spreads on emerging-market bonds have widened; the dollar has strengthened. Yet Ms Georgieva was clear about what not to do. “Go-it-alone actions” such as export controls or blanket price caps would only distort markets and push global prices higher. Monetary policy should “wait and see” while guarding credibility; central banks must stand ready to raise rates if expectations begin to unmoor. Fiscal policy must stay targeted, temporary and consistent with medium-term frameworks. Most countries, she noted, urgently need to rebuild fiscal buffers after years of high debt and rising interest payments. 

The deeper message was institutional. “Strong fundamentals, institutions and structural policies represent the ultimate shock absorbers,” Ms Georgieva declared. Countries control their own resilience; when shocks arrive, those with robust domestic revenue systems and credible institutions fare best. The Fund stands ready to provide financing, demand could rise to $20–50 billion in the near term, but countries must do the real work at home. Her peroration was blunt: “War takes away everything we work for.” 

Tax Gaps and the Fiscal Space They Create 

It is here that a practical, already-proven technology offers an almost textbook response to the Fund’s call for stronger institutions and better domestic resource mobilisation. Indirect taxes, especially VAT and GST levied on energy, fuel and essential goods, typically make up 30-50% of budget revenue in developing and emerging economies. They are also the most stable source of income during crises. Yet the shadow economy, invoice fraud and weak enforcement mean billions leak away. 

TaxCore®, a real-time fiscalisation and e-invoicing platform, directly closes those gaps. The system captures every transaction at source, eliminates leakage without raising tax rates, and delivers an efficiency gain that the IMF has repeatedly endorsed. In Fiji and Samoa, where VAT and GST can constitute up to 40% of national budgets, the system has delivered immediate, verifiable extra revenue precisely when governments needed fiscal room to protect the vulnerable. The same story is playing out in the Republic of Srpska. Worldwide, TaxCore® has already processed more than six billion invoices. 

Indirect Taxes More Than Revenue Stream

“For many emerging economies, indirect taxes are far more than a revenue stream. Public finance relies heavily on it. Protecting that backbone requires precision, not approximation,”  Goran Todorov, CEO of Data Tech International said, and added, “Domestic revenue mobilization is often discussed in policy terms, but its real impact is technical. If transactions are not captured at source, fiscal policy is operating on incomplete truth.”

The timing could scarcely be better. Many of the economies the IMF flags as most vulnerable, small island states with fragile supply chains, sub-Saharan African importers with thin fiscal buffers, are exactly the places where indirect-tax collection matters most. By generating additional revenue without new borrowing, TaxCore® restores policy space. Governments can afford targeted support for the poorest rather than blunt, distortionary subsidies. In a world of supply shocks and tight financial conditions, that breathing room is priceless. “TaxCore was designed precisely for this reality, to give governments immediate visibility over economic activity and secure revenue without increasing the burden on compliant taxpayers,” Todorov concludes.

The system is also designed for the real world. It functions with patchy internet, integrates easily with existing infrastructure, and turns ordinary citizens into partners by issuing transparent e-receipts and enabling simple fraud reporting. The result is not just higher collection but greater legitimacy: taxpayers see their money supporting public services rather than disappearing into the shadows. That public trust, as Ms Georgieva reminded her audience, is itself a structural policy and one of the best shock absorbers available. 

No Silver Bullet, but a Sturdy One 

None of this is a substitute for the broader policy mix the Fund advocates, energy efficiency, diversification, credible monetary frameworks, and ultimately peace. Digital fiscal tools cannot repair damaged infrastructure in Qatar’s Ras Laffan complex or reopen the Strait of Hormuz. But they can give finance ministers the revenue certainty they need to act decisively rather than defensively. 

Delegates gathering in Washington this week will spend much of their time discussing scenarios, coordination and the Fund’s readiness to help. They would do well to spend a little time on the concrete. When every percentage point of GDP growth is harder to come by, and every extra dollar of fiscal space is precious, closing the indirect-tax gap is one of the most straightforward, high-return reforms on offer. TaxCore® does not promise miracles. It simply does what the IMF has long urged: mobilize reliable domestic revenue, strengthen institutions and give governments the tools to cushion shocks without self-inflicted damage. 

The spring meetings opened with a clear-eyed assessment of risk. They should close with an equally clear-eyed embrace of solutions already at hand. War may take away much, but competent, transparent tax administration can help ensure it does not take away the policy space needed to protect the vulnerable and keep the global recovery on track. 

The post IMF Slashes Growth: TaxCore Boosts DRM  appeared first on Dti.

From the PITTA meeting stage, Goran Todorov, chief executive of Data Tech International, framed the stakes of the panel, called “Real-Time Transaction Monitoring: Modernizing GST/VAT Compliance in the Pacific”, bluntly. “Real-time transaction monitoring changes the way revenue administrations work. It gives you information at the moment it happens.”

He added the warning that became the session’s refrain: “If you wait for monthly or quarterly filings… you are already too late.”

Around him sat senior officials from Fiji, Samoa, Papua New Guinea and Vanuatu, each addressing different political, technical and economic constraints, yet arriving at a shared conclusion: real-time data may be the region’s most effective weapon against revenue leakage.

5 Key Takeaways

1. Real-time tax monitoring is operational: Pacific nations demonstrated that real-time transaction data is already reshaping how governments track sales, enforce compliance, and protect revenue. As Moderator Goran Todorov put it: “If you wait for monthly or quarterly filings… you are already too late.”

2. Fiji’s results show the power of transparency at scale: With over 677 million invoices, as of today, and 46.6 billion FJD in recorded sales now visible on a public dashboard, Fiji has shifted from speculation to data-driven oversight. Compliance Director Kelerayani Dawai says the change was immediate: “The data started coming to us.”

3. Samoa proved that political turbulence doesn’t have to derail reform: Despite early pushback and a change of government, Samoa’s TIMS system survived because real-time data brought fairness and credibility to the tax process. As CEO Fonoti Talaitupu Lia Taefu said: “Electronic invoicing gave us visibility we never had.”

4. Vanuatu exposed hidden revenue and changed business attitudes: A pre-launch manual survey revealed 2 billion Vatu in previously unrecorded sales. Once TaxCore® implementation started, businesses adapted quickly. The country is now enrolling taxpayers and accrediting vendors into the system, a process Brechtefeld said is proceeding faster than expected

5. PNG sees real-time data as the key to trust in the tax system: With widespread mistrust and inconsistent assessments, PNG is betting on nationwide GST monitoring to restore confidence. Commissioner Samuel Loi argues: “We need accurate information at the point of sale. That’s where the tax is lost.”

Fiji: Proof in the Data

Fiji was the first mover, adopting digital fiscalization through VAT Monitoring System (VSMS) powered by DTI’s Taxcore® in 2017. Compliance Director Kelerayani Dawai explained why the country pushed ahead: consumption taxes are central to the national budget. “VAT or GST is 40% of Fiji’s revenue,” she said. “So that is why we have taken this step to be the first in the region.”

Before the system, Fiji relied on returns that often did not match reality. The new data stream changed the dynamic immediately. “Once the system went live, we saw businesses starting to issue receipts correctly. We didn’t have to chase them. The data started coming to us.”

The numbers she cited emphasized the Public Dashboard that was recently released and that shift: more than 656 million invoices, 46.6 billion Fijian dollars in recorded sales, and over 530,000 receipt scans by consumers verifying authenticity for every Fijian to see.

What this yielded was rare in tax administration: spontaneous compliance. “We are no longer guessing,” she said. “We can see what is happening.”

Samoa: Real-Time Tax Monitoring Through Turbulence

On another hand, Samoa’s implementation was more turbulent. Its real-time system, known as TIMS once again powered by DTI’s signature software, drew early resistance from small enterprises and became entangled in a political transition in 2021.

“When the new government came in, one of the changes they wanted to see was the removal of TIMS,” recalled Fonoti Talaitupu Lia Taefu, chief executive of the Ministry of Customs and Revenue.

To keep the system alive, officials returned to consultations and parliamentary committees. “You cannot continue with something that doesn’t have political support,” she said.

Ultimately, the government accepted the system. What convinced lawmakers, Fonoti said, was the way real-time data leveled the playing field and stabilized revenue. “Electronic invoicing gave us visibility we never had,” she said. “It reflects what is actually happening in our economy.”

It was not a story of uninterrupted progress, she added, but one of persistence. “Our staff understand the data, our taxpayers understand their obligations, and the system helps both sides.”

Vanuatu: Measuring the Invisible

In Vanuatu, the one of the newest adopters, the Inland Revenue Department plans to use real-time monitoring to expose what many suspected but could not prove: the country’s sales tax base is far larger than the records suggested.

Ahead of the Vanuatu Sales Monitoring System (VSMS) implementation which is another instance of TaxCore®, officials hired students to manually count transactions in retail shops to compare against reported sales.

George Brechtefeld, who leads the VSMS program, described the findings: “The sales in December 2023 showed that we collected an extra 2 billion Vatu.” For a small economy, the discovery was staggering. It also shifted attitudes among businesses.

“Our plan is that by November and December, we should start a roll out of the taxpayers, especially those who already have a POS system and they should get their system accredited into the VSMS, then once that is done they can transmit data into TaxCore.” Brechtefeld confirmed.

Local revenue authority has been encouraging taxpayers to pay for their own solution, specifically the external sales data controller. Then once they can transfer the data to TaxCore, intention of the Government is to refund the money to the taxpayer for the initial investment into devices.

Papua New Guinea: Trust and Scale

Papua New Guinea, the region’s largest and most complex economy, has recently signed a contract with DTI for the nationwide rollout of the Goods and Services Tax Monitoring System (GMS) powered by our TaxCore®. This way, PNG is stepping straight into the digital times. And, for Samuel Loi, Commissioner of Tax, the urgency is driven as much by public mistrust as by administrative challenges.

“The answer is yes… mistrust between taxpayers and the government is still strong,” he said. He attributed this partly to inconsistent or delayed assessments: “Taxpayers in PNG often feel uncertain about the assessments and whether they are fair or not.”

Real-time data, he said, can close that gap, especially for GST, which PNG aims to make its top revenue source. “We need accurate information at the point of sale. That’s where the tax is lost, and that’s where we must have control.”

With more than 85 percent of the population engaged primarily as consumers rather than formal employees, Loi argued that transparency at the transaction level is essential for equity.

Real-Time Tax Monitoring: A Regional Message

If the Pacific once followed global tax trends from afar, the officials here argued the opposite is now true. Todorov returned repeatedly to the question of fairness: “The moment of creation of the invoice… a seller and a buyer are aware of the transaction, as well as the government. All three parties have the same perception of the data, and you will agree that is only fair.”

The leaders on stage echoed the point in their own ways. “We have seen the difference,” Dawai said. “This supports the structure we need for the future,” Fonoti added. “When you have real information, you can protect your revenue,” Loi said. And Brechtefeld captured the sentiment most simply: “It works.”

The Broader Appeal of Pacific’s Model

Around the world, revenue authorities are searching for reliable ways to close revenue gaps without imposing new taxes or burdensome audits. What the Pacific demonstrated in a single morning was a model based on real-time facts that practically show that domestic revenue mobilization is possible within the current financial settings.

Finally, in a region often perceived as peripheral to global policy debates, the message was unambiguous: transparency is possible, affordable and operational, not theoretical. And the implications go well beyond the islands now leading the way.

The post Real-Time Tax Monitoring: World Is Taking Notice appeared first on Dti.

The visit coincided with a significant milestone as the project had just completed its Initial Operational Capability (IOC) phase. This phase represents a critical step toward the system’s Full Operational Capability (FOC), the stage when the VSMS will be fully operational and capable of monitoring sales across the country.

During the briefing, the DCIR team, in collaboration with Data Tech International (DTI), presented a detailed update demonstrating that the system is ready to move into the next stage. Officials highlighted the steady pace of implementation and the system’s capacity to enhance oversight in the national tax process.

The presence of the nation’s top leaders accentuated the government’s commitment to advancing digital tools for more effective tax administration. Their visit emphasized both political support and public accountability for this high-priority initiative.

System Objectives and Achievements

Ms. Maja Miodragović, DTI Account Manager, showcased the VSMS’s achievements to date, highlighting the system’s core objectives. These include reducing tax fraud and under-reporting, strengthening tax compliance, maximizing revenue collection, promoting transparency, and supporting fair competition among businesses.

The briefing highlighted how registration and accreditation activities are advancing steadily, bringing more businesses into the system. These efforts demonstrate the VSMS’s ability to integrate with existing structures while preparing for broader implementation across sectors.

Furthermore, officials presented measurable progress in each area, indicating that the system is on track to meet its design goals. The collaboration between DCIR and DTI has been focal to achieving these objectives, combining technical expertise with operational oversight.

This stage of the project reflects the government’s dedication to transforming Vanuatu’s tax system and preparing for a fully operational, digital monitoring platform.

VSMS by TaxCore: Government Endorsement and Next Steps

Both the Prime Minister and Minister of Finance expressed their satisfaction with the progress achieved. They publicly commended the strong partnership between DCIR and DTI, framing the project as a transformative initiative for Vanuatu’s fiscal administration.

“I commend the joint efforts of DTI and DCIR,” the Prime Minister said. “I am enthusiastic about the upcoming phases and eager to see the first results. We look forward to Vanuatu’s continued progress toward digital transformation.”

Finally, the visit concluded with a reaffirmation of the government’s commitment to digital transformation. With the VSMS moving steadily toward Full Operational Capability, the leadership’s endorsement indicates continued support for the system’s implementation and operational expansion.

The positive outcome of this visit provides a strong setting: Vanuatu is advancing in digital tax compliance, aligning practical technology deployment with governmental oversight, and setting the stage for a fully operational, transparent, and accountable system that benefits both the state and its businesses.

The post VSMS by TaxCore: Prime Minister Reviews Progress appeared first on Dti.

Taxes that should fund public services vanish in cash economies where transactions go unrecorded. Goods and services pass across borders and into markets without ever entering official registers. Outdated reporting systems bury tax officials under stacks of paper that fade faster than the memories of those who issued them. For a continent that will soon hold a quarter of the world’s population, such inefficiencies are barriers to growth, equity, and political stability. 

This is the context in which the discussion around revenue assurance has shifted. No longer an administrative exercise, it has become a decisive factor in whether governments can deliver for their people. And at DGA2025, the annual gathering where digital governance takes center stage, one theme will be resonating DTI’s approach: Africa needs the next-generation tax monitoring and reporting solution. 

DTI at DGA2025: The Tax Gap That Refuses to Shrink 

Unfortunately, the continent’s fiscal hole is visible and expanding. According to African Union estimates, countries collectively lose tens of billions of dollars every year through tax evasion, avoidance, and underreporting. Domestic resource mobilization, the polite term for improving tax collection, has been a staple of policy reports for over a decade. Yet, progress remains slow. 

Part of the problem lies in the absence system or having a non-functional system. In many African countries, businesses still handwrite receipts, store them in filing cabinets, and present them to auditors months later, if at all.  Tax authorities have no ability to verify what is accurate and what has been altered. In the meantime, governments run deficits, and citizens lose confidence that taxes are collected fairly. 

This vicious cycle affects budgets, yes. Moreover, it shapes politics as well. When citizens suspect that the tax net is full of holes, they question why they should comply. When businesses know competitors can underreport with little risk of detection, they feel disadvantaged. And when governments lack reliable revenue, they turn to external borrowing, often at steep interest rates, locking future generations into repayment cycles that stifle development. DTI will focus on finding answers to these questions as well, during the participation at DGA2025.

Why Technology Matters Now? 

The call for “next-generation” digital tax monitoring and reporting solution is quite pragmatic. Traditional audit-based tax systems were built for economies where transactions happened on paper, within easily tracked supply chains, and in relatively small numbers. Africa’s economies today are different. 

From the sprawling informal markets to the fast-growing digital payments sectors, millions of transactions happen every second. Capturing them with old methods is impossible. Now more than ever, what is needed is not more auditors with clipboards but systems that can record data in real time, analyze it instantly, and flag inconsistencies before they turn into losses. 

Countries in the Pacific, where DTI is heavily engaged, like Fiji and Samoa have shown what happens when governments shift to real-time monitoring of sales and value-added taxes. Compliance rates rise. Honest businesses welcome a fairer playing field. And tax authorities finally have the clarity they need to plan national budgets with confidence. African governments should examine these examples closely, as they won’t seem as distant experiments but as models that are highly adaptable to their own realities. 

DTI at DGA2025: View from the Ground 

For years now, DTI has worked hard to build TaxCore®, a COTS solution that fits the technical capacity and economic conditions of each country we work in. In practice, that means that our solution is capably to thrive in various tech environments, record every transaction at the point of sale, issue secure digital receipts and feeds the data instantly into tax authority databases. It is a system that removes the uncertainty of manual reporting and builds a continuous chain of evidence from seller to state. 

From DTI’s perspective, the value of such a system goes beyond technology. TaxCore® brings fairness into the fiscal relationship. Taxpayers see that compliance is not discretionary, but they also gain relief from arbitrary audits and burdensome paperwork. Governments receive clarity not through guesswork but through data they can trust. 

“Revenue assurance is not about raising taxes,” as Goran Todorov, CEO at DTI explained in a recent discussion. “It is about collecting the right taxes, consistently and transparently. When the system is fair, trust follows.” This emphasis on fairness should resonate across African capitals too. From Kigali to Lusaka, finance ministries understand that their citizens will support reforms only if they believe the rules apply equally to everyone. And this is exactly why digital tax monitoring becomes an excellent administrative tool. A tool that goes far beyond what is technically intended for, as it can serve as a pragmatical instrument for building legitimacy. 

The Informal Sector: Africa’s Persistent Puzzle 

Still, the road ahead is not simple. Africa’s vast informal economies, ranging from open-air markets to small family enterprises, pose a challenge we saw in other regions of the world. By some estimates, more than 80 percent of employment in sub-Saharan Africa exists outside the formal system. Asking these businesses to suddenly comply with digital reporting may seem unrealistic. 

Yet, this is precisely where next-generation revenue assurance can make a difference. Instead of expecting informal vendors to fill out paperwork, governments can offer them simplified digital tools linked directly to tax authority platforms. Mobile receipts, QR codes, and offline-enabled applications can capture data without disrupting daily trade. 

Countries that have experimented with such approaches report early signs of progress. Vendors who once resisted taxation begin to accept it when compliance becomes simple, when systems are accessible in local languages, and when the benefits, such as access to credit or eligibility for government programs, are visible. 

DTI at DGA2025: A Continent-Wide Moment of Choice 

What makes the discussion urgent now is not only the scale of the losses but also the timing. Africa is entering a demographic surge that will shape the global economy for the rest of the century. By 2050, the continent’s population will double, with millions more needing schools, jobs, and infrastructure. Governments cannot meet this demand if they continue losing revenue to inefficiency and underreporting. 

International donors have long filled some of the gaps, but dependence on aid is increasingly seen as politically and economically unsustainable. Domestic revenue is the only durable source of funding for development. That is why finance ministers from across the African continent are pressing harder than ever for practical solutions. 

At DGA2025, where digital governance leaders from around the world will gather, revenue assurance is not expected to dominate conversations, but DTI will raise this important topic across the board. It is obvious that African officials know that the continent cannot afford another decade of delay. They also know that adopting next-generation systems requires political will, technical training, and above all, trust between governments and citizens. 

The Stakes for Global Confidence 

We must be frank. Africa’s fiscal debate is not confined within its borders. International lenders, investors, and rating agencies watch closely. When governments demonstrate they can collect taxes efficiently, their creditworthiness improves and interest rates on loans decline. Thus, foreign direct investment becomes more attractive. Revenue assurance we talked earlier, in this sense, is not only about balancing national budgets but also about strengthening Africa’s place in the global financial system. 

The opposite is equally true. Countries that fail to modernize remain trapped in cycles of debt and dependency, forced to pay higher premiums for capital while struggling to maintain basic services.  

Toward a Fair Fiscal Future 

DTI’s message at DGA2025 will echo this reality: practical digital tax monitoring is essential. It is the foundation of fair and transparent fiscal governance. With the right tools, Africa can reduce its dependence on external financing, restore confidence in its institutions, and give citizens tangible proof that taxes collected are taxes put to work. 

As Sam Koim, the Commissioner General of Papua New Guinea’s Internal Revenue Commission, recently said in a related discussion about his own country’s reforms: “The idea is not for taxpayers to pay more, but to pay right.” And, Africa’s challenge is no different. The continent does not need higher taxes; it needs taxes collected fairly, consistently, and transparently. That is the promise of next-generation revenue assurance and the reason it cannot wait. 

The post Africa’s Fiscal Crossroads: DTI at DGA2025 appeared first on Dti.

The company views its presence as a chance to showcase its solutions, share insights on real-time transaction monitoring, and support the ongoing efforts of regional authorities to improve transparency, efficiency, and trust in taxation. 

A Panel of Distinct Perspectives 

From our perspective, one of the most closely followed sessions focused on the modernization of goods and services tax (GST) and value-added tax (VAT) compliance through real-time transaction monitoring. The panel, moderated by Goran Todorov, Chief Executive Officer of Data Tech International (DTI), drew significant attention from delegates who see tax modernization as a cornerstone of economic stability in the region. 

The contributions of four senior Pacific tax administrators, from countries that have already implemented DTI’s TaxCore® or are currently in the process of doing so, captured the close attention of the other delegates throughout the discussion. Tax system digitization emerged as a central element in strengthening budget stability, with the depth of the discussion highlighting both the technical and strategic dimensions of digital tax administration. The exchange underlines how real-time VAT monitoring systems enhance transaction visibility, close compliance gaps, and support informed policy decisions across the Pacific. 

Ms. Kelerayani Dawai, Compliance Director at the Fiji Revenue & Customs Service (FRCS), reflected on Fiji’s early adoption of digital tax systems, highlighting lessons from implementation. Mrs. Fonoti Taefu, Chief Executive Officer of Samoa’s Ministry of Customs and Revenue (MRC), spoke candidly about the determination needed to keep tax reform on track during the pandemic. Mr. Sam Loi, Commissioner for Taxation at Papua New Guinea’s Internal Revenue Commission (IRC), detailed his country’s ambitious national rollout of real-time monitoring, while Mr. George Brechtefeld, Acting Manager for Design and Monitoring at Vanuatu’s Department of Customs & Inland Revenue (CIR), explained how a targeted solution will close long-standing compliance gaps. 

Each intervention highlighted the diversity of national experiences while underscoring a shared understanding that traditional reporting models no longer meet the needs of governments responsible for financing development in an uncertain global environment. 

PITAA 2025 Meeting: Data Tech International’s Role 

For DTI, the discussion in Tonga emphasized the growing demand for systems that bring clarity and trust to tax collection. The company’s flagship solution, TaxCore®, has already been deployed in multiple jurisdictions worldwide, and its presence in the Pacific is steadily expanding. 

Speaking after the panel, Mr. Todorov remarked that Pacific tax administrations are at a decisive moment. “The momentum for real-time monitoring is now undeniable,” he said. “Authorities are no longer asking if they should move in this direction, but rather how quickly and effectively they can do it.” 

DTI views the Pacific as a region facing distinctive challenges, including dispersed populations, limited connectivity, and substantial informal economies, yet also as a region where TaxCore® is already delivering measurable benefits. Through the creation of systems that allow tax authorities to record and validate transactions as they happen, governments can close revenue gaps, reduce compliance costs, and strengthen public confidence in the fairness of taxation. 

Why Real-Time Monitoring Matters? 

No one can argue, the move towards real-time transaction monitoring is a technical upgrade. Also, it represents a shift in how tax administrations approach compliance. Traditional models, built on delayed reporting and post-facto audits, often leave revenue authorities one step behind taxpayers. By contrast, real-time reporting provides immediate visibility, making it far harder for tax evasion to go undetected. 

For Pacific economies, many of which depend heavily on consumption taxes, this shift is especially relevant. Governments need predictable revenue streams to finance infrastructure, health care, education, and climate adaptation. When tax systems underperform, the burden often falls disproportionately on external aid or borrowing. Real-time tax monitoring helps reduce that vulnerability by creating stronger domestic revenue bases. 

The Broader Context of PITAA 2025 

PITAA has long served as a forum for member jurisdictions to exchange expertise and coordinate their efforts. This year’s theme, “Pacific Synergy: Weaving a Sustainable Future through Innovative Laws, Efficiency and Strategic Revenue Mobilization,” reflected the urgency of finding collective solutions. 

Tonga’s hosting of the event carried symbolic weight. The country has weathered both the COVID-19 pandemic and the devastating Hunga Tonga–Hunga Ha‘apai eruption, experiences that underlined the fragility of small island economies. In Nuku‘alofa, participants repeatedly circled back to the idea that the region needs cooperation paired with modern tools.

From DTI’s vantage point, the Pacific is showing that practical innovation does not require massive budgets or decades of planning. Instead, well-designed digital systems drive progress by adapting to national circumstances while still adhering to international standards.

PITAA 2025 Meeting: TaxCore® Significance 

TaxCore® is central to this vision. By giving tax authorities, the ability to monitor receipts in real time, the platform reduces opportunities for under-reporting, provides taxpayers with greater certainty, and generates reliable data for policy planning. As Mr. Todorov stressed, “Technology must serve both the administration and the taxpayer. Transparency is not a one-way street; it works only when all stakeholders see value in the process.” 

DTI also recognizes that technology alone is not sufficient. Legal reform, institutional training, and communication with the business community are equally critical. The company, therefore, positions itself not only as a supplier of software but as a partner working alongside governments to meet long-term revenue objectives. 

In conclusion, Pacific tax administrators in Nuku‘alofa this week demonstrated their determination not to remain on the sidelines of global tax modernization. On the contrary, they are actively advancing, country by country, with solutions tailored to their specific circumstances. DTI’s TaxCore® is well-positioned to continue supporting this ongoing journey. 

The post PITAA 2025 Meeting: Push Towards Real-Time Monitoring  appeared first on Dti.

Although the conference floor was really busy, I’ve managed to sit down with the head of Fiji Revenue and Service Mr Udit Singh. And, I was glad I did. The conversation carried the weight of experience and authority. Fiji has faced the challenge of modernizing VAT collection while keeping businesses engaged, a task that many Pacific nations are confronting right now. And yes, this discussion served another occasion as well. As we look forward to the upcoming PITAA Annual Heads Meeting 2025 in Tonga, Mr Singh will join a panel that I am given an opportunity to lead on Real-Time Transaction Monitoring. Thus, this interview acts as a prologue to the mentioned event.  

5 Key Takeaways

1. Real-Time Digital Monitoring Boosts Compliance: Fiji’s VAT Monitoring System (VMS) tracks every transaction, reducing underreporting and ensuring transparency at the point of sale, strengthening revenue collection without raising tax rates.
2. Stakeholder Engagement is Critical: Early and ongoing communication with businesses, training, and consultation build trust and foster voluntary compliance, turning a top-down rollout into a collaborative process.
3. Capacity Building Ensures Success: Practical guidance and hands-on support for both tax officials and business owners are essential; technology alone cannot achieve effective compliance.
4. Transparency and Fairness Drive Participation: By making VAT reporting visible and consistent, the system encourages voluntary compliance and positions businesses as partners in public service rather than subjects of regulation.
5. Political and Legal Support is Vital: Sustained government commitment ensures that technical challenges, misinformation, or stakeholder pushback do not derail implementation, providing a stable environment for cultural and systemic change in tax compliance.

Pacific VAT Compliance: Fiji’s Shift to Digital Monitoring 

For years, Fiji relied on businesses to self-report VAT. On paper, the system appeared straightforward. In reality, many transactions slipped through. Cash payments went unrecorded, and compliance depended on voluntary accuracy. The result was revenue loss and an incomplete view of the economy. This is exactly why the country went down the road of digital monitoring.  

“The biggest improvement has been a clear rise in VAT compliance,” Udit explained. “We also see more voluntary declarations and better alignment between sales data and tax returns. VAT monitoring system (VMS) reduced underreporting and gave us transparency at the point of sale, which strengthened revenue collection without increasing tax rates.” 

The system works because it tracks every transaction in real time. Each e-invoice becomes an official record. The government can monitor revenue as it happens, and businesses have clarity on what they owe. 

Building Trust During Implementation 

Rolling out the VMS powered by TaxCore in Fiji was far from straightforward. Many businesses initially resisted, uncertain about what the system would mean for them. Some worried it might expose errors or invite penalties, while others struggled with technical limitations. Misinformation also spread, with rumors suggesting the system was designed to monitor private business activity rather than improve compliance. 

To address these challenges, FRCS engaged directly with stakeholders. Officials visited offices, shops, and market stalls to explain the system in clear, practical terms. They organized training sessions, both in-person and online, giving staff and business owners the confidence to use the new technology. Consultation forums allowed businesses to raise questions and provide feedback, turning what could have been a top-down rollout into a collaborative process. A dedicated support team was also established, ready to troubleshoot issues and guide users whenever problems arose. 

Mr. Singh highlighted that building trust was as important as installing the system itself. “We wanted businesses to see the system as a partner, not a threat,” he said, emphasizing fairness and transparency over surveillance. By showing that the system aimed to create a level playing field rather than punish anyone, authorities encouraged voluntary compliance and cooperation. 

The focus on human engagement proved essential. Technology alone could not have succeeded without consistent communication, reassurance, and hands-on guidance. Through patient explanation, practical support, and open dialogue, the rollout gained acceptance, laying the foundation for a system that strengthened compliance, fostered trust, and gave both government and businesses clarity about their responsibilities. 

Pacific VAT Compliance: Experiences for Papua New Guinea 

Fiji’s experience provides worthy lessons for Papua New Guinea as it moves on a similar path. Mr. Singh emphasized three key takeaways. First, stakeholder engagement must begin early. Businesses are far more receptive when they are part of the conversation from the outset. Understanding the purpose of the system, its benefits, and how it affects daily operations reduces resistance and builds cooperation. 

Second, capacity building is necessary. Both tax officials and business owners need training to use the system effectively. Without practical guidance and hands-on support, even the most advanced technology can fail to deliver. Fiji’s rollout included workshops, training sessions, and ongoing support, ensuring users gained confidence and clarity in every step. 

Third, strong political and legal backing is vital. Projects of this scale inevitably encounter challenges, technical hiccups, misunderstandings, or temporary pushback from stakeholders. Governments must remain committed so that these obstacles do not derail progress. “When issues arise, politicians must know there is a plan and a goal,” Mr. Singh explained. “The tax authority clears obstacles and makes the process straightforward for everyone involved.” 

Taken together, these lessons show that successful implementation depends on more than technology. Early communication, practical training, and sustained political support create an environment where compliance is achievable, understandable, and accepted. For Papua New Guinea, these insights offer a roadmap to build a system that strengthens revenue collection while maintaining trust and collaboration between government and businesses. And far beyond, as the better VAT compliance in Pacific becomes easier to achieve. 

Digital Transparency and Fairness 

The VMS powered by TaxCore does more than simply record transactions. It creates a level of digital transparency that allows the government to see economic activity in real time. Mr Singh emphisized that the system can quickly identify taxpayers who were previously unregistered or reporting inaccurately. By bringing these activities into view, the system encourages voluntary compliance, making it clear that everyone is treated equally. 

“All taxpayers see that the system is fair,” he said. “Those who pay taxes know the authority is acting with integrity. Compliance improves because people understand the rules and see them applied evenly.” 

This transparency extends beyond numbers on a screen. It strengthens trust between the government, businesses, and citizens. When people perceive that the rules are applied consistently and fairly, they engage with the system willingly. Businesses are not merely monitored, they become active participants in public service. Compliance shifts from being a requirement imposed from above to a shared responsibility recognized by all. 

Through the combination of real-time data with visible fairness, VMS fosters a culture where paying taxes is understood as part of contributing to the community. It is a system that clarifies obligations, reduces uncertainty, and builds confidence in the institutions responsible for managing the country’s resources. 

Pacific VAT Compliance: A Cultural Shift Toward Compliance 

The impact of the VAT Monitoring System reaches far beyond numbers and data. Businesses now comply because the system makes evasion difficult, visible, and inconsistent with community expectations. Compliance emerges naturally when rules are applied fairly and consistently. 

“The effect is quiet but powerful,” Udit Singh said. “The system supports itself because people see it working, and they follow the rules willingly. It aligns responsibility with action.” He added that the visible fairness of the system changes how businesses approach their obligations. “When everyone knows the rules are applied evenly, it removes doubt. People feel that paying taxes is simply part of how business should be done.” 

Mr. Singh stressed that the system does more than enforce rules; it builds understanding. “Businesses start to see themselves as partners in public service rather than just subjects of regulation,” he said. “When compliance is visible, predictable, and fair, it encourages voluntary participation, which is far more sustainable than forcing adherence through penalties.” 

Eyes on Tonga and the Pacific 

The upcoming PITAA Annual Heads Meeting in Tonga presents an opportunity to share these lessons across the region. Pacific nations face similar challenges: dispersed populations, informal economies, and limited technical capacity. Fiji’s experience shows that clear communication, careful planning, and political support are crucial to success. 

Mr Singh’s insights provide a practical guide. Real-time transaction monitoring is no longer theoretical, but a proven method for making tax collection fairer and more reliable. Countries in the Pacific can use these lessons to implement systems that work for their people, their businesses, and their governments. 

“Thank you for trusting Data Tech International and working with us,” I told Mr Singh as our conversation ended. He smiled, acknowledging the effort yet confident about the path ahead. 

The post Pacific VAT Compliance: The Fiji Model   appeared first on Dti.