Mmegi

IMF study spots missing VAT billions

On the hunt: The Finance Ministry is plugging revenue leakages in the country PIC: MORERI SEJAKGOMO
On the hunt: The Finance Ministry is plugging revenue leakages in the country PIC: MORERI SEJAKGOMO

A team from the International Monetary Fund that came to the country last year at the invitation of the Botswana Unified Revenue Service says it found heavy compliance gaps in Value Added Tax, particularly in trade and transportation as well as mining and manufacturing.

The team visited the country between October 27 and November 7 and has passed its findings to the BURS, indicating that key revenues running into millions of pula are going uncollected due to non-compliance.

According to the IMF team, the country’s overall VAT gap trended upward in the period between 2017 and 2024, driven by a growing compliance gap. The VAT gap is the difference between what the BURS could be collecting optimally and what it was actually collecting during that period.

Editor's Comment
The Boko-led administration has to tread carefully

‘When you make peace withyourself, you make peace with the world’- Maha GhosanandaThis may come at a huge cost if not handled properly. What started off on Labour Day in Letlhakane this year, where Boko was in attendance when the militant lawyer-cum-trade unionist, Robert Rabasimane rebutted the President’s address in defence of the trade union has seemingly spiralled out of control. The issue is now creating a cat-and-mouse type of a...

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