09 Aug 2015

Some Members of Parliament have welcomed the Income Tax (Amendment) Bill, 2015 with suggestions to the proposed amendments.

The Bill that was presented by finance and development planning minister Mr Kenneth Matambo, seeks to simplify the law relating to taxation policy and tax administration.

Debating the Bill, Selebi Phikwe West MP Mr Dithapelo Keorapetse said although the Bill is an urgent matter, consultation is essential on matters relating to the public purse.

Mr Keorapetse further said taxation in the agriculture sector should be relaxed, except for commercial farmers. 

He said agricultural protectionism is important because it employs many people and should be harnessed to contribute raw materials to agro-based industries.

He said more subsidies should be introduced in the sector so that farmers could supplement their income and manage the supply of agricultural commodities and also influence the cost of such commodities.

“I will not support a bill that puts more burdens on an ordinary farmer,” he said.

MP for Okavango Mr Bagalatia Arone said attention should be paid to effects that the bill will have on small farmers. 

He said the clause of the Bill that seeks to introduce a four percent withholding tax for each payment made to a person for the sale of livestock for slaughter or for feeding for slaughter will only benefit the cattle barons and not ordinary farmers. 

He also said that he is uncomfortable with the exemption of the Botswana Meat Commission (BMC) from tax.

Francistown South MP Mr Wynter Mmolotsi reiterated that it is improper to exempt BMC from paying tax. 

He suggested that instead of taxing the BMC turnover, it should be the profit that is taxed.

He said BMC should continue paying tax on the basis of profit accrued. 

He said he was also not comfortable that farmers will be subjected to tedious processes of tax returns.

“Accounting for tax is a very tedious process, especially for small scale farmers. It should be clear as to what kind of farmers will be subjected to that,” he said.

However, Mr Matambo clarified that farmers who own less than 300 cattle and arable farmers who own 30 hectares and below, will not file tax returns. Ends