On 5 February 2024, Mr. Peggy O. Serame, Botswana’s Minister of Finance and Economic Development presented the 2024 Budget Speech to the National Assembly. The budget contains a number of important tax measures. The key proposed tax measures are as follows:
- Strategic Tax Law Review and Modernization: The persistent evaluation of tax laws aims to consolidate, simplify, and modernize the existing Income Tax Act. This initiative is driven by the need to adapt to the evolving global business environment, rationalize concessions under the VAT Act, and harmonize administrative provisions across the Income Tax Act and the Value Added Tax Act, ultimately paving the way for the introduction of a new Tax Administration Act.
- Electronic Invoicing for Efficient VAT Collection: The implementation of Electronic Invoicing (E-Billing) requirements is underway to enhance the efficiency of VAT collection. The first phase of a three-year pilot project is set to conclude by December 2024.
- Incorporating Digital Sales into Taxation: Reforms are being introduced to include digital sales of products and services by remote service suppliers within the taxation framework, ensuring a comprehensive and contemporary approach to revenue collection.
- Optimizing E-Services for Enhanced Accessibility: The ongoing optimization of e-services encompasses improvements in online tax filing systems, online customs declarations, and electronic payment methods (electronic funds transfer), contributing to a more streamlined and accessible digital experience for taxpayers.
- Digital Tracking of Excisable Goods: A solution is being implemented to digitally mark and track excisable goods (track and trace), with full implementation targeted for July 2024. This measure aims to bring transparency and efficiency to the monitoring of excisable goods.
