Cattle farmers decry �impoverishing� new tax

From July next year farmers will be obliged to pay a four percent tax on cattle sales
From July next year farmers will be obliged to pay a four percent tax on cattle sales

The imposition of four percent withholding tax on the sale of cattle means more hardships for the local farmers, says the Botswana National Beef Producers Union (BNBPU).

With the new Income Tax (Amendment) Act of 2015, government has exempted the Botswana Meat Commission (BMC) from the 15% taxation and replaced it with four percent tax on money paid to farmers for the supply of cattle deducted as withholding tax.

BNBPU chairperson, Madongo Direng said although it is a good move for the government to do away with taxation of the BMC on gross income derived from sale of meat and meat products, it is “totally unacceptable” to replace it with taxation of the cattle farmers on gross income derived from the sale of cattle for slaughter or feeding.

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The Boko-led administration has to tread carefully

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