09 Aug 2015

Parliament has passed the Income Tax (Amendment) Bill, 2015, which seeks to amend the Income Tax Act (Cap. 52:01) to simplify the law relating to taxation policy as well as tax administration.

The amendment bill was presented by the Minister of Finance and Development Planning, Mr Kenneth Matambo last week, who moved that it be proceeded with under a certificate of urgency.

It proposed to exempt Botswana Meat Commission (BMC) from taxation. Currently, the BMC is taxed on its turnover.

It also proposed to make a provision in the act to allow tax dispensation for companies and other organisations that are prepared to contribute towards provision of critical social infrastructure.

Further, it is expected to enable Botswana Unified Revenue Service (BURS) to pay income tax refunds to taxpayers immediately after completing assessment.

Meanwhile, debating the Bill, Boteti West MP, Mr Slumber Tsogwane said exempting BMC from tax was a welcome development.

Mr Tsogwane argued that the Commission needed support because in the event that it collapsed, local farmers would be negatively affected.

He added that BMC needed protection from government because that would also mean protection to Batswana.

Further, Mr Tsogwane, who is also Minister of Local Government and Rural Development, said should the BMC become a better entity in terms of cash flow, Batswana would see better prices in selling their cattle.

On the other hand, Gaborone North MP, Mr Haskins Nkaigwa was strongly against the Income Tax amendment, arguing that the motive behind the bill sought to appease certain people in the society, hence it would not serve any purpose to ordinary Batswana.

Mr Nkaigwa, however, said there was need for through consultation with stakeholders and the public before the Bill could be drafted, adding it was improper to pre-empt what Batswana would like without consultation.

 

Molepolole South MP, Dr Tlamelo Mmatli was also against the amendment on grounds that Batswana were already feeling the pinch of other forms of tax and that the idea of taxing farmers would be a bad decision. Ends