In a move aimed at increasing domestic revenue collection and strengthening compliance, the tax agency last week announced that those earning more than P33,000 a month will face a new 27.5% personal income tax. This affects those who rake in more than P400,001 annually, replacing the current maximum rate of 25% for the country’s highest earners. The new bracket means taxpayers earning above the threshold will contribute a larger share of their income towards government revenue, while those earning between P156,001 and P400,000 annually will continue to be taxed at the existing 25%.
The reforms form part of a wider review of Botswana’s tax framework aimed at expanding the tax base, modernising tax administration and improving compliance amongst individuals and businesses. BURS Acting Commissioner Domestic Tax, Segametsi Radibe-Michael, revealed the amendments are intended to create a simpler, more efficient and internationally aligned tax system that supports economic growth while ensuring taxpayers meet their obligations. “The changes seek to broaden the tax base, strengthen compliance and address gaps within the current tax system,” she said in her address to the media.
