Botswana’s Ministry of Finance presented its 2026–27 budget to the National Assembly on 9 February 2026, proposing a 3% corporate tax rise, higher taxes for top earners, and wide-ranging VAT reforms, including e-invoicing and taxation of remote services.
Botswana’s Ministry of Finance presented its budget proposals for the 2026-2027 Financial Year (FY) to the National Assembly on 9 February 2026 . Amendments include changes to corporate taxation, VAT and personal taxation.
The key tax-related proposals include:
Corporate tax rate
The government has proposed to increase the corporate income tax rate by 3%. This follows a previous proposal of a 1.5% increase in the 2025 Budget, which was paused to allow for further consultation and refinement.
Value Added Tax (VAT)
To enhance revenue and align with international best practices, the following VAT reforms are being implemented:
- Electronic Invoicing: A mandatory electronic invoicing system is scheduled for rollout in April 2026. This system will allow for real-time transaction monitoring to reduce leakages and improve compliance.
- Zero-Rated List: The government proposes to reduce the list of zero-rated items to increase the effective VAT rate.
- Remote Services: VAT is being introduced on remote services.
Personal taxation
For individual taxpayers, the government has revised its previous plans to ensure perceived fairness for top earners. The new proposal includes:
- Top-Earner Threshold: A revised threshold for top earners has been set at P 400,001 and above per annum.
- Tax Increase: Income falling within this top bracket will attract an additional 2.5% tax.
Earlier, Botswana’s Ministry of Finance and Economic Development presented its budget proposals for the 2025-26 fiscal year to the National Assembly on 10 February 2025.
