07 Apr 2016

The Minister of Finance and Development Planning, Mr Kenneth Matambo, has informed Parliament that the annual review of taxation laws takes into consideration what all stakeholders propose including what the International Monetary Fund (IMF) advised regarding tax incentives that maybe extended to companies setting up under the Special Economic Zones (SEZ) Dispensation.

Answering a question in Parliament on Wednesday, Mr Matambo said the caution in the IMF report would therefore be considered when tax laws are reviewed later this year. He further said at this point in time, his ministry was not able to outline any steps taken to effect the advice given by IMF but however, the advice received from IMF or any other organization will be considered on its own merits in line with the economic circumstances of Botswana.

He indicated that the costs and benefits of tax incentives would be weighed against the revenue that may be foregone if such tax incentives were to be granted and consideration will be made of the economic benefits of granting or not granting such tax incentives.

Member of Parliament for Ghanzi North had asked the minister whether government would take the advice rendered by a team of IMF economic experts led by Enrique Gelbard in December 2015 in which they cautioned government against tax incentives which would be extended to companies setting up under the SEZ Dispensation, and if so, to briefly outline the steps taken to effect the advice, and if not, to state the reasons this advice would not be considered given that taxes provide needed financial impetus to Botswana’s economy treasury. Ends