04 Nov 2025

The impending tax reforms targeting digital services is expected to improve the Botswana Unified Revenue Services (BURS) systems and enhance the country’s revenue collection by 40 per cent during the National Development Plan 12 (NDP 12), says Minister of Finance, Mr Ndaba Gaolathe.

Mr Gaolathe said the new framework would expand Botswana’s fiscal base to fund various investments and developmental projects.

“The new technology framework will modernise the BURS VAT system and expand the VAT base for taxing digital services, expected to boost economic revenue by 40 per cent. This in turn will fund social protection, infrastructure and job creation investments,” he said.

Mr Gaolathe who is also the vice president said in Parliament on Friday proposing his Ministry’s P8.83 billion Public Investment Programme (PIP) budget proposal for NDP 12.

The sum of P6.76 billion will go toward implementing new projects which were meant to drive the Botswana Economic Transformation Programme (BETP), while the remaining budget will be channeled toward completing ongoing projects.

Mr Gaolathe also mentioned the implementation of the electronic VAT invoicing and monitoring system which would enhance the effectiveness of the transactions.

He said the system would improve transparency and close revenue leakages through fraud and under declaration of VAT.

Mr Gaolathe further said the Government Accounting and Budgeting System (GABS) and Financial Management Information System (FMIS) would be revamped to ensure fiscal discipline and budget credibility were strengthened.

He said the modern transformation of the systems would also contribute toward a more transparent and efficient service delivery to the citizenry.

He said plans were underway to establish a locally based reinsurance entity in an endeavour to have a resilient insurance platform.

“By creating a locally based reinsurance entity, we will retain more premium value within Botswana. 

The envisaged Botswana Insurance market platform project will support the creation of a digital and operational market place. 

The whole idea is to enhance transparency, data sharing and efficiency across the insurance value chain,” he explained.

In addition to contributing toward economic diversification through an inclusive financial sector, he said this would also position Botswana as a regional insurance hub.

Mr Gaolathe further noted that the manual procurement system would be substituted with an e-procurement procedure for the capacitation of procuring entities to enable them to effectively implement the new system.

He said PPRA IT systems would be developed to operationalise the organisation’s expanded mandate.

“This platform will serve as a centralised hub for publishing procurement data, tender notices and performance matrix of procuring entities. 

It is designed to enhance stakeholder engagement, provide real time access to procurement information and streamline reporting processes,” he noted.

Furthermore, Mr Gaolathe noted that Bank of Botswana would introduce an innovation hub, alongside regulatory sandbox, national payment infrastructure forming part of the initiatives intended to drive BETP.

He said the projects would enhance innovation and improve the national payment ecosystem. ENDS