08 Apr 2026

Small businesses and informal traders are set to benefit from a smarter and simpler tax system following the introduction of the Tax Administration Bill of 2025 in Parliament. 

Presenting the Bill on Tuesday, acting President and Minister of Finance, Ndaba Gaolathe said by harmonising income tax and VAT provisions into a single framework, the Bill promised to slash red tape, introduce electronic filing and establish an independent Tax Tribunal to resolve disputes, measures that would significantly enhance the ease of doing business in Botswana. 

Minister Gaolathe said at its core, the Bill was designed to modernise and consolidate administrative provisions from the Income Tax Act and the Value Added Tax Act. 

Among its major provisions, he said were uniform registration requirements across all tax types, mandatory record-keeping in Botswana for eight years and clear rules for self-assessments, estimated assessments and amended assessments. 

He added that to ensure fairness and efficiency, the Bill established an independent Tax Tribunal to hear appeals, introduced market-based interest on late tax payments and streamlined refund processes. 

Again, he said the Bill also enhanced investigative powers, including joint audits with customs, while providing for tax clearance certificates and standardised public and private rulings. 

“To maintain professional standards, tax agents will now be required to register for renewable three-year periods, supported by updated penalties for offenses such as obstructing tax officers or corruption. 

These reforms are expected to reduce taxpayer compliance time and eliminate the duplication of filing and payment,” he said. 

Furthermore, he said the Bill looked toward the future by introducing definitions for new concepts like the electronic billing system for VAT-registered persons. Minister Gaolathe described the Bill as the culmination of a decade-long effort to comprehensively review the country’s tax landscape. 

“It forms part of a broader package that includes the Customs Bill, Income Tax Bill and Value Added Tax Bill. 

The legislative proposals before Parliament are not isolated measures. They form part of a deliberate, coordinated transformation of Botswana’s tax system, firmly anchored in the broader fiscal strategy outlined in the 2025 and 2026 budget speeches,” he added. 

He indicated that such transformation was fueled by a national aspiration for a high-income, digitally enabled and economically diversified Botswana. Mr Gaolathe noted that while mineral revenues had historically supported national development, that model had reached its limits, hence the need for the country to now fund its own development in a fair and sustainable manner. 

Currently, he said, Botswana’s tax-to-GDP ratio was 13.4 per cent, well below its potential. As such, he said government aimed to raise this to 25 per cent over the next four years and such growth would come through expanded participation and improved efficiency and not by imposing heavier burdens on those who were already compliant. 

The minister further emphasised that the reforms were shaped by extensive public consultations, including the recent National Tax Pitso, where citizens expressed the desire for a transparent and responsive system, where their contributions led to visible improvements in their lives. ENDS