11 Dec 2019

Botswana’s tax to GDP ratio, based on the latest revenue figures for the 2017/18 financial year, is 22.3 per cent. 

This was said by the Minister of Finance and Economic Development, Dr Thapelo Matsheka when responding to a question from the Selebi Phikwe West MP Mr Dithapelo Keorapetse.

 Explaining further, Dr Matsheka said Botswana’s tax to GDP ratio of 22.3 per cent for 2017/18 compared favourably with the SADC’S average tax to GDP ratio of 17.2 per cent for 2017/18 and average of 17.2 per cent for Africa. 

“However, this ratio is still below the benchmark for emerging market economies such as South Africa, whose ratio was 26 per cent over the same period,” he said. 

As part of the improvement efforts, the minister said the Botswana Unified Revenue Service (BURS) had a new Strategic Plan 2019 to 2024 and within the plan, one of the Key Performance Indicators required an improvement in the tax to GDP ratio to reach 26 per cent by March 2024. 

Dr Matsheka also noted that some of the targeted strategic initiatives to attain the goal included undertaking a project to estimate the Tax Gap to provide insights regarding the economic sectors in which to focus BURS’ revenue mobilisation efforts. 

“It also entails enhancing enforcement efforts by increasing the number of tax audits conducted on taxpayers,” he said.

Mr Keorapetse had wanted to know the country’s tax to GDP ratio. 

Mr Keorapetse had further asked the minister if he was satisfied with the ratio and the ministry’s general specific plans to improve.  ends