BURS has paused the planned VAT on medical services, allowing further consultation with healthcare providers, medical aid schemes and the public.
The Botswana Unified Revenue Service (BURS) issued a public notice on 30 July 2026 suspending the implementation of 14% VAT on medical services, which was scheduled to take effect from 1 August 2026.
The suspension will allow BURS to consult with private healthcare providers, medical aid schemes and the public amid concerns that the tax could increase healthcare and medical insurance costs.
This follows Botswana’s re-enacted VAT Act, which makes private medical services subject to VAT, while prescription drugs have been moved from the exempt to the zero-rated category. Botswana announced the re-enactment of the Income Tax Act and the Value Added Tax (VAT) Act, amendments to the Customs Act, and the introduction of a new Tax Administration Act on 1 July 2026.
