Business

BURS bemoans low response as tax amnesty nears end

Eyes on the ball: Makgolo PIC: PHATSIMO KAPENG
 
Eyes on the ball: Makgolo PIC: PHATSIMO KAPENG

The tax agency calculated that it was owed a total of P6.8 billion comprising P2.5 billion in principal tax as well as P4.3 billion in interest and penalties.

Under the amnesty, which kicked off on June 30 last year, taxpayers with outstanding obligations were given an opportunity to pay only the principal and have the interests and penalties wiped off their bills.

The amnesty initially ran to December 31, 2021, but was extended to the end of this month due to a muted response by the targeted taxpayers.

In a televised brief last Thursday, BURS commissioner-general, Jeanette Makgolo revealed that of the 22,839 taxpayers targeted under the amnesty, less than 10% had come forward when the original deadline elapsed.

As at May 31, 58% had come forward, but of this figure, only 35% or about 8,000 had actually finalized their principal payments and benefited from the amnesty. The balance, or about 5,200 taxpayers, came forward for the amnesty but did not qualify due to factors such as failing to bring their returns or failing to clear their principal liabilities.

“We are still quite behind looking at the fact that we had expected 22,000 taxpayers,” Makgolo said. “You can see that Batswana are not coming forward to take this amnesty seriously. “We have done as much as we could and we have not rested once since the amnesty began, going to radio, calling the media, going to dikgotla, and educating taxpayers about this programme. “The amnesty ends in less than two weeks and we advise people to hurry and approach us.”

The commissioner-general revealed that out of the P4.3 billion in outstanding interest and penalties the BURS was prepared to waive for qualifying taxpayers under the amnesty, just P408 million had been forgiven.

Speaking during the same televised address, BURS Commissioner of Operations Phodiso Valashia, said there was no possibility of the tax amnesty being extended and after June 30, the law would take its course against tax delinquents.

“We will have to use the law to get the money from those who owe and we will follow what the law says in terms of how we get those funds, whether it’s from your account or through suing you. “It is not our desire for anyone to find themselves parting with money in interest and penalties, but rather our wish is that we all do the right thing when tax obligations are due. “After June 30, more interests and penalties will accrue on whatever the affected taxpayers owe, which is the law.”

The tax amnesty was first announced in the February 2021 budget speech, with government saying the initiative was an effort to ease the burden on taxpayers and for companies, an opportunity to be in a position to participate in public procurement.