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.

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IMF urges end of tax holidays

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.

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Thamaga man charged with unlawful wounding

Two die in head-on collision

Police hunt herder over alleged girlfriend-related attack

Molepolole police hunt eloper after mob assault

BOFEPUSU condemns passport fee hike

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