Botswana Unified Revenue Service (BURS) Commissioner General, Phodiso Valashia, said the country can no longer rely on traditional revenue streams and must urgently strengthen its tax base as it takes on a greater share of financing its own development. “Let me begin plainly. There are two truths we must confront today,” he said this week at a Tax Pitso. “Botswana is faced with financing a significantly larger share of its development from domestic revenue, and many citizens and businesses remain sceptical... about the ability of the Revenue Service to administer it fairly, efficiently, and consistently.” At the centre of the revenue challenge is a wide compliance gap.
Valashia revealed that Botswana’s Value Added Tax gap stands at approximately 40%, reflecting the scale of uncollected revenue in the economy. “Botswana’s Value Added Tax gap is estimated at approximately 40%, meaning a substantial portion of revenue that should be funding national priorities is not being realised,” he added. The gap comes as Botswana’s fiscal position tightens, with declining revenues and rising expenditure placing pressure on the budget. Government has increasingly turned to domestic resource mobilisation to sustain operations, with tax revenue now carrying a greater burden in financing public services. For the 2026-27 financial year, BURS has been assigned a revenue target of P65.17 billion, expected to fund the bulk of government expenditure. However, Botswana’s tax effort remains relatively low by international standards. Tax collections currently stand at about 13% of GDP, underscoring the limited reach of the tax net in a slowing economy.
