The revenue service's target for this year amounts to about 76% of the P93.5 billion in revenues government expects to accumulate in 2024-25. The task before the BURS is essentially to collect nearly 80 thebe out of every pula the government expects to receive in the next financial year.
Briefing the media last week, BURS commissioner general, Jeannette Makgolo said government expects the tax agency to step up its revenue maximisation drive by expanding the country’s revenue base and reforming tax laws to improve operational efficiencies.
She described the revised target as a “tall order”.
“You may note that this is a tall order that requires BURS to make the most of out a suite of reforms and strategies to improve operational efficiency and voluntary tax and customs compliance,” she said. “The government of Botswana continues to pin its hopes on the Revenue Service to mobilise the much-needed tax revenues for funding national projects and programmes. “We have fully accepted the challenge with conviction and stand ready to deliver for the country to develop and sustain its citizens.”
In the current financial year, the BURS is behind on its P60.4 billion collections target. In the February budget speech, the target was revised to P59.8 billion following the decline in the growth of domestic economy which was mainly due to significant diminished demand for and low prices of diamonds.
As at the end of February 2024, revenue collections stood at P51.7 billion with just a month to go until the end of the financial year on March 31.
Makgolo said some of the efforts to boost collections have led to the BURS devising strategies to bridge the gap in the remaining weeks of the financial year.
In the coming financial year, the commissioner general said the BURS would implement several initiatives to broaden the tax base, close leakages and maximise revenue, as a way of meeting its targets and helping the budget’s socio-economic goals.
The initiatives include implementation of electronic invoicing or e-billing for efficient VAT collection as well as the implementation of fiscal marking and monitoring solution for excisable products, which is more commonly known as the track and trace for alcohol and tobacco products. The BURS is also keenly following legislative efforts around the introduction of a digital tax, as previously planned by government.
The legislative proposals introducing a digital tax are expected in the winter session of Parliament.
