Govt averse to reviewing profit repatriation policy

Speaking in Parliament this week, he said profits of foreign investors are already subject to standard rates of corporate income tax at the prevailing rate of 22 percent. "Dividends are also subject to a withholding tax of 7.5 percent," he added. He said the government through the taxes, is able to get its fair share from any proceeds from foreign investors.

Balance of payment estimates prepared by Bank of Botswana (BoB) for 2008-2012 show that retained earnings (profits of foreign-owned businesses that were not repatriated) totalled P7.6 billion. Seretse said the amount accounts for 80 percent of recorded inflows of foreign direct investment over the same period.