BoB weighs in on tax debate :: Mmegi Online

The Bank of Botswana (BoB), government’s chief policy adviser, says economic authorities and supporting international bodies are agreed that the country needs to broaden its tax revenues through adjustments and a reduction of exemptions.

The Finance and Economic Development ministry is proposing broad tax reviews as part of measures to restore fiscal stability in NDP 11, which is due to suffer P18 billion in budget deficits. “What government gives, it must first take from its citizens; that’s public finance 101,” BoB governor, Moses Pelaelo told BusinessWeek at a briefing last week. “It’s just like that.

“The issue of broadening the tax base and enhancing the efficiency of public finance management are critical. “When you have many exemptions and others, they may be distortionary and hamper the ability to collect tax efficiently. “We are all aligned on this, from the BoB, to government and others, looking at the situation.

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