Botswana’s Ministry of Finance and Economic Development has presented its budget proposals for the 2025-26 fiscal year to the National Assembly on 10 February 2025. Amendments include changes to corporate taxation, VAT and personal taxation.
The key tax-related proposals include:
Increase in corporate tax rate
The 2025-26 budget proposes a 1.5% increase in corporate tax from 22% to 23.5%.
Tax reforms to simplify and modernise VAT
The ministry also proposed to enact a new Tax Administration Act to harmonise tax rules in the Value Added Tax (VAT) and Income Tax Acts, reduce compliance time for taxpayers, and eliminate duplication in filing and paying taxes. Furthermore, it intends to repeal and re-enact the VAT Act to modernise and broaden its scope to encompass modern business practices. The plan is also to repeal and re-enact the Income Tax Act to consolidate and modernise to address global business trends and international tax issues.
BURS to introduce VAT and digital tax
The Botswana Unified Revenue Service (BURS) plans to implement VAT on digital transactions, electronic invoicing for VAT collection, and a “track and trace” solution for excisable goods.
Increase in personal tax rate
The personal income tax rate will be increased by 1.5% from 25% to 26.5%.
