26 Nov 2015

The Minister of Trade and Industry, Mr Vincent Seretse says income tax is premised on the taxation of income and not persons. Responding to a question in Parliament on behalf of Minister of Finance and Development Planning, Mr Seretse said any individual regardless of age who earns an income of over P36 000 a year should pay income tax.

On the other hand, Mr Seretse said VAT is a consumption tax that is paid by the final consumer of goods and services irrespective of age or level of education.

He said Botswana has traditionally been sensitive on how she levies tax on her citizens and has as such maintained low income tax and VAT rates adding that blanket exemption of tax on people aged 65 years and above would erode the tax base and thus leave government with no option but to increase tax rates.

He told Parliament that government has introduced a number of societal safety nets that ensure that all Batswana who cannot afford a decent living get assistance from government.

MP for Gaborone North Mr Haskins Nkaigwa had asked the minister whether there are any plans by government to consider exempting  elderly people above 65 years from all forms of taxes and whether it is not considered double taxation to tax pension as it was taxed before. Ends