Connect with us

Gov’t highly likely to increase TAX

Persistent failure to provide genuine tax invoice documentations and undervaluing imported goods by business operators could force the Ministry of Finance and Economic Development Planning (MEDP) to increase tax, Botswana Unified Revenue Services (BURS) Acting Commissioner General (CG) Segolo Lekau has told WeekendPost.

This, Lekau says, emanate from the fact that a number of businesses especially those importing goods are trespassing the customs law. “It appears the citizens are working hand in hand with these businessmen and agree to be given falsified payment documents that do not necessarily depict the real price. At the end the government is losing a lot of money because we claim less than we should be from SACU,” said the acting CG.

It is said a car will be registered to enter Botswana at a distorted price of P4, 500 while it’s actual price maybe P45, 000. This then leaves Botswana losing out. This, it is said does not happen in other countries hence most operators opt for Botswana route as it is easy to manipulate prices. Lekau continued; “This now may force the government to increase the tax because she may feel that what she is getting is very low as she will not be getting the actual custom duty and VAT corresponding with the product imported.

Remember tax is a contract between the state and its citizen, it helps to develop the country.” One of BURS’ mandates is to advise the MEDP on matters relating to the administration and collection of tax and perform other functions in relation to tax as the Minister may direct. Already there is a narrative that the government may increase tax as way of cushioning for its ballooning expenditure following impulse increase of public servants wages.

The government conceded through Finance Minister, Dr Thapelo Matsheka last year that the country’s fiscal position is not stable as it was projected and that the growing budget deficits might have to be tackled. This should be through some adjustments as the revenue supported by diamonds fails to keep up with the government increased expenses.

“We have started an exercise similar to post audit clearance, looking at how much these cars are sold and we have found out that law is not being followed, there is lot of undervaluation and we have decided to detain some of the properties,” Commissioner General Lekau revealed. BURS is perturbed by non-compliance such that already they have launched crusades to carry own audit on a number of factories to see if there is undervaluation of goods.

1522 vehicles have been confiscated from 24 car dealerships in Mogoditshane, as the tax man starts to crack the whip. “We are going to plug those inefficiencies by applying stringent measures,” BURS General Manager Investigations Compliance and Enforcement, Kaone Molapo cautioned. Following the seizure of cars in Mogoditshane, Lekau told this publication that they may now start setting prices for ‘Fong-Kong’ cars.

“We are permitted by the law and even the best international practices dictates that, if we don’t agree with the product price on the invoice we can compare and set our own looking at the market comparable. So, it is true, that we may set the price soon that is if the operators do not dust themselves and comply with taxation laws because we want voluntary compliance.”

This has been echoed by Molapo who said; “They are pushing us to determine prices for the products and goods. Compliance should be at maximum.” The extent of the seriousness of the matter is such that if an ordinary person fails to show original tax invoice sheet of any imported product heads will roll which may include repossession of the product.

To those that have circumvented the tax law, the authorities say it is ‘not yet Uhuru’ as the crusade is still on. “There is what we call post clearance audit. We will go to these people to demand genuine statements and carry our own audit because the country has lost a lot of money,” Molapo said at a media briefing this week.

For Botswana to have been grey listed for money laundering and financing terrorism was owing to factors like these.  Botswana is a member of the Eastern and Southern Anti-Money Laundering Group (ESAAMLG) an affiliate of the Financial Action Task Force (FATF) and she is doing everything possible to close any leakages of going back to being grey listed or possibly black listing.  

The tax law has been stiffened and anyone crossing the border should declare any amount from P10, 000 upwards and the goods. “We have reviewed our law and penalties are now hefty for non-declaration. You can be charged P1 million or treble the value of the goods. BURS’ mandate is to perform tax assessment and collection functions on behalf of the government. And to take appropriate measures to counteract tax evasion.

The authority as per its act is mandated to administer and enforce the revenue laws, promote compliance with the revenue laws and to take such measures as may be required to improve services given to taxpayers with view of improving efficiency and maximizing revenue collection.   

BURS remains optimistic   

Meanwhile BURS continues to be optimistic in revenue collection as some strategies had been put in place to turnaround the performance of the organization and meet the target going forward. BURS officials have vowed to intensify debt collection, strengthen the verification of refunds before payment and collect the outstanding withholding tax and VAT from imported service from government projects.

The emergence of new generation tax issues such as transfer pricing also pose a challenge to the BURS. Furthermore unemployment also poses a threat in terms of lowering revenue income because an increase in number of people without income results in the absence of taxation thereby reducing the total tax revenue from employment income. BURS has set a target of P45 billion for the financial year 2019/2020.

Continue Reading


Botswana confirms new COVID-19 variant

17th May 2021

Botswana health officials have confirmed the new COVOD-19 variant, which was first found in India. The Ministry of Health and Wellness has through a press statement informed members of the public that a new COVID-19 variant (B.1.617), first discovered in India. The Indian variant was confirmed in Botswana on 13 May 2021.

According to Christopher Nyanga, spokesperson at the Ministry, this followed a case investigation within Greater Gaborone, involving people of Indian origin who arrived in the country on the 24th April 2021.

“As at 16 May 2021, the B. 1. 617 variant was confirmed in two (2) people. The clients are currently receiving medical care and remain stable with no life-threatening symptoms. The two (2) cases were part of 383 people (both Batswana and some Indian nationals) who were tested for COVID-19. From this number, 43 tested positive, with two (2) showing the B. 1. 617 variant as already alluded to. Contact tracing has been expanded in line with COVID-19 protocols. All contacts and confirmed cases have been evacuated to facility based quarantine and isolation respectively, for close monitoring,” Nyanga narrated.

The World Health Organization recently announced that the Indian Covid-19 variant was a global concern, with some data suggesting the variant has “increased transmissibility” compared with other strains.

Meanwhile in the wake of Botswana’s confirmation of the Indian variant, Nyanga reminded the public of the government intervention to control the introduction of new variants of public health concern into the country. He stated that all those who have travelled or transited through areas of high risk as previously communicated on 3rd May 2021 upon return shall immediately quarantine in a central area to be identified by the Ministry of Health and Wellness for a period not exceeding ten (10) days; Repeat Polymerase Chain Reaction (PCR) test after seven (7) days of quarantine and be discharged as per the outcome of the results.

He said the requirements are complementary to the mandatory requirements of producing on arrival a negative PCR test not older than 72hrs from the time the sample was collected

“The public is advised to remain vigilant and minimize the spread of COVID-19 by following the already outlined preventative measures such as washing of hands with soap or use of a hand sanitizer, wearing of face masks, avoiding crowded places/social distancing and avoiding non-essential movement,” Nyanga said.

The India variant – officially called B.1.617.2 – is one of four mutated versions of coronavirus which have been designated as being “of concern” by transitional public health bodies, with others first being identified in Kent, South Africa and Brazil.

Continue Reading


Khama lawyers dismiss BDP’s MacD

17th May 2021
former President Lt Gen Ian Khama

The lawyers representing former President Lt Gen Ian Khama, Ramalepa Attorneys have come forth dismissing a response letter penned down by Botswana Democratic Party (BDP) activist MacDonald Peloetletse after he was slapped with a P1.5 million lawsuit for defamation of their client.

Tebogo Tladi, an attorney at Ramalepa, said last week Thursday Peloetletse took to social media to publish a substantively false, wrongful and unlawful statement about Khama. MacDonald Peloetletse’s commentary which was posted on Gabz FM News page reads, “I am a former soldier. Everything former President SKI Khama said here is a LIE. In fact, soldiers suffered more under Khama than under his predecessors.

He actually stole money that the UN had paid to the soldiers who went for the operations and paid them less than a quarter of what was actually due to them.  “Unhappy soldiers took the BDF to court and won, the BDF is still struggling to pay the debts! Khama can fool some people, but not all the people and not all the time.

“In fact many soldiers, serving, retired and those that resigned and were in the operations during Khama’s time get even more annoyed to such disrespectful statements by Ian Khama.” Khama’s lawyer says the impugned statement was published with the intention to injure his client (Khama) in his personality rights, good name and dignity, further indicating that the statement has damaged his good reputation.

“We have therefore been instructed by Client to demand, as we hereby do, that you publish on the same forum a retraction and a full and unconditional apology to Client within three days of receipt of this letter- and that you deliver such apology in a formal letter to the Office of the Former President, Dr Khama. In the event that you have not compiled with this demand by close of business on Monday 10th May 2021, our Client will assume that you have refused to comply with this demand.”

To top it all off, Khama demands that Peloetletse pay him P1.5 million in damages for defamation. “Furthermore, we hold instructions to demand as we hereby do, that you pay our Client damages for defamation in the sum of P1, 500,000.00 within seven days of receipt of this letter.” In the event that Peloetletse fails to pay the amount of damages demanded by Khama, Tladi says they will institute legal proceedings for the recovery of the aforesaid damages.

In his response letter addressed to Ramalepa Attorneys, Peloetletse said that he requests enlightenment and clarification that he be provided with proof that the allegations and comments which they attribute to him were indeed authored by him and that the platform which the comments were placed was not hacked.

“Please also advise if whether your clients has been endowed with a “special particular privilege status” that restricts the citizens of this country from commenting or responding to public statements made by your client in the course of political discourse especially when made on public forum and relate to matters of general public concern. (I trust that your brilliant legal mind is well informed with respect to the jurisprudence in such matters)”.

Peloetletse also said he would like to share with the attorneys a video which was posted on a public forum. “Please listen carefully to the conversations and discussion herein and advice if possibly such discussions form a reasonable basis for a justifiably rebuttal by any Motswana Citizen to the public pronouncements and defamatory statements made by your client about our government (bearing in mind of course a citizens constitutional right to freedom of speech and freedom of expression).’’

Consulted for further comment on the matter on Thursday after receiving Peloetletse’s response, Khama’s attorney Tebogo Tladi said the letter doesn’t hold any water. “The only way out for him is to prove the truth of the allegations on his comment or deny publication. He does not answer substantively to the defamation and does not respond to the demand of an apology or payment of damages.

So his letter really contains largely matters irrelevant to the substance of the letter of demand. His response in fact presents no legally cognizable defence at all- it would appear he responded without the benefit of legal advice, which would not be prudent for such an important case. So we will proceed to issue summons and wait to see what defences he will plead in court.’’

Continue Reading


Inside the multi-million Dollar Kazungula Bridge business

17th May 2021
kazungula bridge

Botswana and Zambia this week celebrated the opening of a multi-million Dollar infrastructural project, the Kazungula Bridge, projected to contribute around P100 million annually for Botswana. This project comes after the signing of the 2012 Agreement between the two countries to construct a bridge that would ease movement of goods.

President Mokgweetsi Masisi said the Kazungula Bridge will open avenues for improved trade, job creation and economic diversification in both countries. Further, the Bridge will significantly accelerate Southern African Development Committee (SADC) regional integration agenda which Botswana and Zambia are vigorously pursuing.

“By growing our strategic partnerships through this project, we have improved the development and competitiveness of our economies to attract more private sector investment, thereby, supporting our efforts to create employment, especially for the burgeoning youth,” Masisi said at the opening ceremony in Kazungula on Monday.

The Kazungula Bridge comprises a road and rail bridge over the Zambezi River, directly linking Botswana and Zambia. It has One-Stop-Border Post facilities on both sides, which will enhance the operational efficiency at entry points, replicated on both sides of the boarder.

The Bridge was originally conceived as a critical link in the African North-South Corridor under the African Union’s New Partnership (NEPAD) for Africa’s Development programme. It has since evolved to encompass a multimodal transport plan under the Programme for Infrastructure Development in Africa (PIDA).

The PIDA programme, which encompasses liberalisation of air travel, rail links, road, water and all other modes of transport has only one objective: to unite the States of Africa in order to foster trade on the continent

“Connectivity of our nations will in no small measure, promote people to people interactions and uplifts their standard of living. I am pleased to state that the completion of this project is a clear demonstration of our commitment to PIDA.”

The 260 million US Dollar Kazungula Bridge was commissioned by Zambian President, Edgar Lungu and President Masisi. President Lungu said the bridge was a monumental effort linking Zambia internally and externally to ease the movement of goods and services.

“I have held talks with my counterpart in Botswana that this project must run daily up to 22 hours as soon as possible and you the technocrats must not play ping-pong with us after making these public procurements,” Lungu said at the official opening in Kazungula.

For his part, DRC President Felix Tshisekedi said the project was tandem with the Africa Union (AU) goals and priority areas for Agenda 2063 which called for a prosperous Africa, based on inclusive growth and sustainable development.


The new Kazungula Bridge replaces the Kazungula Ferry, a pontoon ferry across the 400-metre-wide Zambezi River between Botswana and Zambia. It was one of the largest ferries in South-Central Africa, having a capacity of 70 tonnes.

In 2003 the ferry was the site of a disaster when a severely overloaded Zambian truck capsized one of the pontoons and 18 people drowned. The accident was blamed on the lack of weighbridges in Zambia to check the weight of trucks.

In August 2007, the governments of Zambia and Botswana announced a deal to construct a bridge at the site to replace the ferry. The existence of a short boundary of about 150 meters between Zambia and Botswana was apparently agreed to during various meetings involving Heads of State and officials from all four States in the 2006-2010 period.

The route for this new bridge crosses the boundary without entering Zimbabwe and Namibia. Zimbabwe already has a bridge into Zambia at Victoria Falls, 70KM from Kazungula. Namibia on the other hand has a bridge into Zambia at Katima Mulilo about 150KM upriver.

Continue Reading
Do NOT follow this link or you will be banned from the site!