Botswana: Tax measures in 2021-2022 budget

Botswana: Tax measures in 2021-2022 budget

There are tax measures in the 2021-2022 budget proposals—including provisions to address the economic effects of the coronavirus (COVID-19) pandemic.

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Tax provisions in the budget propose modernizing the tax collection systems and raising certain tax rates.

Other tax measures included in the budget include the following proposals to:

  • Increase the value added tax (VAT) standard rate from 12% to 14%—effective 1 April 2021
  • Increase dividend withholding tax from 7.5% to 10%—effective date expected to be 1 July 2021
  • Offer tax amnesty during the 2021-2022 tax year—to encourage taxpayers to settle outstanding taxes owed in exchange for a waiver of interest and penalties
  • Increase the zero-rate threshold for individual taxpayers from P36,000 to P48,000—effective from the 2021-2022 tax year
  • Increase the fuel levy one pula (approximately U.S. $0.09) per litre—effective 1 April 2021
  • Introduce a levy of two thebe (one thebe is equal to 0.01 pula) for every gram of sugar in excess of four grams per 100 millilitres
  • Implement a plastic bag levy
  • Introduce a levy on second-hand motor vehicles imported into Botswana
  • Review and adjust service fees and levies charged by various government ministries with a view to implementing revised fees—effective 1 April 2021

Read a February 2021 report [PDF 974] (revised 21 May 2021) prepared by the KPMG member firm in Botswana

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