15 Oct 2023

Governments should consider supporting cooperatives to promote economic stimulation at grassroots level.

Speaking at the African Confederation of Cooperatives Savings and Credit Association (ACCOSCA) 23rd congress of the Savings and Credit Cooperative Association (SACCA) seminar in Gaborone recently, the commissioner general of Botswana Unified Revenue Services (BURS) Ms Jeanette Makgolo said for tax purposes, cooperative associations should be categorised as mutual associations and be exempted in whole or in part where necessary.

“Government can use taxation as a driver of cooperative development,” Ms Makgolo told the seminar.

She said cooperatives needed to be supported as a special vehicle for attaining sustainable development, financial inclusion, employment creation and poverty alleviation.

She further called on cooperatives to use their advocacy role to dialogue with policy makers for their empowerment through tax framework, among others.

Ms Makgolo also said with emerging issues such as illicit flows, there was need for capacitation of cooperatives, particularly SACCOS to guard against issues of anti-money laundering, combating financing of terrorism and proliferation of arms of war as well as illicit financial flows.

Nonetheless, she said exempting SACCOS did not negate the role of tax in the development of countries, adding that tax contributed to the advancement of the countries’ economy.

“For Botswana to achieve its aspirations of a high income country by 2036, it will have to collect enough to meet its objectives.”

However, Ms Makgolo said despite such an obligation, government had been kind enough to encourage its citizens to partake in credit and savings.

She said as SACCOS grew, they would in turn invest in businesses that would be taxed and create employment opportunities.

The SACCA, which was helde from October 8 to 13, was attended by participants from different African countries. ENDS