10 Nov 2020

Botswana has exempted value added tax of over P12 million with rebates in total customs duty of just above P2 million in imports, acting CEO of Botswana Trade Commission (BOTC) Mr Pelotshweu Motlogelwa has said. Giving a status report on trade facilitation in the import and exports markets in Gaborone on Monday, Mr Motlogelwa said the rebate facility was in provision of duty free and VAT free importation of essential products for the fight against COVID-19 which saw BOTC process around 13 applications with nine reported to be under the ministry of Health and Wellness while 4 were from local companies.

Mr Motlogelwa said the rebated goods were from several countries outside the Southern African Customs Union (SACU) which included China, Malaysia, Thailand, Denmark and India.

He said goods sourced within the SACU area were not exempt for TAX and VAT as per the customs tariffs instrument. 

He noted that rebated products were COVID-19 IGM rapid test kits, disposable sampling kits, consumable package for tests, PCR plates, surgical gloves, viral media plastic tubes and nasal refined white sugar crystal.

He clarified that rebate item 412.11 of the extraordinary Gazette 231 only covered a few specified products which include medical, pharmaceutical supplies and textiles, further noting that the rebate item would only be in effect until the end of the state of emergency. 

Housed with the country’s Botswana Bureau of Standards, BOTC has a mandate which according to Mr Motlogelwa was to ensure that the country built local industries that were competitive with export trajectories. 

By being the country’s foremost trade remedial and industry protections instrument, Mr Motlogelwa added that the rebate exemptions were aimed at meeting commitments under COVID-19.

While  this rebate item would come to a close with the state of emergency, he said the rebates and addendums to export commitments would continue to ensure that  reduced inputs to production could give local industries leverage in international trade.

“We need to be self-sufficient and set up industries to improve local industry growth and export potential,”he said. Ends