IMF urges end of tax holidays

Tuesday, January 13, 2026 | 480 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

BGI under fire over multi tenders awarded to one consultancy

Innocent Selatlhwa | 2d ago

Political fame costs family time

Tsaone Basimanebotlhe | 2d ago

Mogae: The intellectual democrat

Wene Owino | 2d ago

BDF sheds off bad boy tag for Mogae

Pini Bothoko | 2d ago

Botswana, SA demand results in agreements

Spira Tlhankane | 2d ago

SA seeks increased presence of Botswana companies

Spira Tlhankane | 2d ago

Faulty DPP bid to seize dead man’s assets collapses

Mpho Mokwape | 2d ago

Poultry sector shake-up signals new era for citizen entry

Pauline Dikuelo | 2d ago

Warm relations must not come at the expense of fair trade

“I believe that free but fair trade isan absolute imperative”– John E. JamesFor two countries bound by geography, history and deep economic ties, periods of diplomatic strain serve neither side well. President Duma Boko’s efforts to restore momentum to relations with Pretoria deserve recognition, particularly at a time when Southern Africa faces shared challenges ranging from sluggish economic growth and unemployment to energy security...

Mmegi Editor | 22 May 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.