IMF urges end of tax holidays

Tuesday, January 13, 2026 | 500 Views |

STRUGGLING TO SURVIVE: The tax incentives introduced under SPEDU are meant to encourage investment in Selebi Phikwe and surrounding areas PIC: MBONGENI MGUNI

The International Monetary Fund (IMF) has advised Botswana to end tax holidays such as those offered under SPEDU, warning that generous incentives are leaking revenue at a time when government finances are under growing strain.

In its latest Article IV mission report, the IMF argues that Botswana must urgently broaden its revenue base and rein in costly tax exemptions if it is to stabilise its fiscal position as mineral revenues soften and recurrent spending remains rigid.

“Measures to broaden the revenue base include streamlining exemptions on zero-rated VAT goods and services, replacing the CIT holidays in Special Economic Zones with less costly investment tax credits,” the IMF said in the report.

Already have an active account? Log in here.

Or Sign up and get unlimited access to premium articles.

ECONOMY

Dawnbell takes copyright royalty fight to High Court

Spira Tlhankane | 18 h ago

BPS, education ministry partner on police vehicle repair

Pini Bothoko | 20 h ago

Rammoni’s cultural journey reaches new heights

Boitumelo Khutsafalo | 20 h ago

Hosanna Gospel Singers to record with Dr Tumi

staff writer | 20 h ago

Way Kay ready to shake up Amapiano with Woza Way Kay

Laone Choeunyane | 20 h ago

Soul Over Hype: Poloko NB’s push to heal through Hip-Hop

Johannes Kambai | 20 h ago

No decision on technical director – BFA

Mqondisi Dube | 21 h ago

Royal showdown: Too close for comfort

Kabelo Boranabi | 21 h ago

The time is now to relax adoption laws

Over the years, there has been many reports of infants being abandoned by parents. Many factors can contribute to child abandonment, some of which may stem from mental health issues and lack of support, but other reasons may be that one could have made better choices with proper education. Some parents abandon their infants due to financial difficulties and the fear of having to provide for a newborn. Many developed countries have come up with...

The Monitor Editor | 06 October 2026

About us

Mmegi is the leading independent source of breaking news, latest news, current
affairs, Politics, Business, Sport, debates, analysis, and entertainment news in Botswana.