The tax agency beat its 2024-2025 collection target of P58.7 billion by raising P61.1 billion, helped by strong Value Added Tax (VAT) and receipts from the Southern African Customs Union (SACU). The target had initially been set at P71.3 billion, but was revised down during the year after an assessment of revenues. For the current financial year, 2025-2026, analysts expect the BURS’ job to be more difficult. The local economy contracted by three percent last year and the prolonged diamond slump is yet to show a firm recovery. According to figures from the budget, the BURS is expected to collect P12.1 billion from VAT, P19 billion from non-mineral income tax and P24.4 billion from SACU, amongst other taxes. Collectively the BURS’ tax target will make up for 80.1% of the P75.5 billion total revenue and grants outlined in the budget for financing government projects and programmes. On Thursday, BURS Commissioner General, Jeanette Makgolo, told MonitorBusiness the agency was poised to rake in taxes higher than the set target for this financial year despite worries over the performance of the economy and geo-political trade wars raging around the world. “We are very confident that we will exceed the target because we are already at P61 billion and we have a very robust strategy in place to keep collections coming in,” she said in an interview on the sidelines of a briefing.
US President Donald Trump recently slapped global import tariffs on nearly every country, including a 37% duty on Botswana, to address what he said were "unfair trade imbalances". The tariffs were due to kick off on Wednesday, but Trump subsequently announced a 90-day pause for most countries except China. The threat of high US tariffs and the associated uncertainty has already shaken global markets and is expected to impact most economies, with Botswana likely to feel the pinch through reduced diamond sales at a time when the industry is focusing on a recovery. Government is banking on the BURS to keep the deficit from widening beyond the predicted P22 billion it could hit this financial year. Already the budget projections are facing shocks from pressures in the diamond market coupled with pressures from SACU revenues that could fall because of geo-trade tensions. The tighter economy could also impact on VAT collections, whilst the slow growth in formal sector employment as well as any liquidations, could impact income tax receipts.
BURS officials said government was meeting on the US tariffs. “Government has only met once and is finding ways to mitigate the situation. “BURS will meet again with other government agencies to chart a way forward,” the officials stated. The higher than expected revenue collection in 2024-2025 was supported by high collection on VAT which raked in P14.45 billion against a target of P11.28 billion. VAT is an indirect tax levied on the supply of goods and services consumed within Botswana. SACU receipts surpassed targets by P855 million, with actual collections amounting to P27.6 billion against a target of P26.7 billion, due to a favourable exchange rate. Makgolo said in the current year, BURS would introduce the track and trace technology for products such as alcohol, adopt the electronic VAT billing system and introduce a digital tax, amongst other measures to improve collections. The measures have been pending for several year, due in part to challenges by industry. “I want to assure you that as BURS, we are committed and convicted to our duty call, and we shall do all in our power to ensure that the government is in a position to finance its intended projects and programmes,” the Commissioner-General said
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