Swaziland, a British protectorate since 1867, became independent on 6 September 1968. The Kingdom of Swaziland is an absolute monarchy. The king appoints the prime minister and the council of ministers (cabinet) and can legislate by decree. A new constitution was launched in 1968. However, in 1973 the king repealed the constitution, abolishing Parliament and all political parties.
A system of government with elections for local councils, who then chose their representatives in the National Assembly, was introduced in 1978, creating a 2-tier form of representative government which was reformed in 1993 to allow the introduction of secret ballots and the direct election of National Assembly members. The vote was granted to all citizens over the age of 21 who were not insane or had not committed serious crimes. There are 30 senators, of whom 20 are appointed by the king and 10 elected by the National Assembly. The National Assembly consists of 65 deputies, of whom 55 are directly elected from candidates nominated by the local councils and 10 appointed by the king.
In 1998 government revenues amounted to 27 percent of the GDP. The most recent year for which tax revenue data are available is 1987, when taxes on income, profits, and capital gains generated 38 percent of government revenue, domestic taxes on goods and services 11 percent, export levies and import duties 42 percent, other taxes 1 percent, and non-tax revenue 7 percent.
The corporate income tax is 37.5 percent. Small mining companies with net income below the equivalent of around US$2,500 are taxed at 27 percent. There is a withholding tax of 15 percent on dividends paid overseas, and dividends paid to residents are taxed at 10 percent. There are tax breaks for companies producing for export, and for companies with staff training programs.