Taxpayers reluctant to file returns
Only 25% filed returns by deadline BURS collects P33 billion for financial year 2023/ 24
Botswana Unified Revenue Service ( BURS) has so far collected close to P33 billion, about 56 percent of this year’s target of P60.4 billion. Last year, the Revenue Service exceeded their set target of over P47 billion to bag a total collection of P49 billion.
Commissioner General, Jeanette Makgolo expressed disappointment that by September end, the initial deadline for returns filing, only 15 986 of the 70 000 taxpayers expected to file returns submitted their returns.
As a result, the deadline has been extended to December 31, 2023. “The extension became inevitable due to low turnout for returns filing. I encourage those who are still lagging behind to take advantage of the extension to comply,” Makgolo said. Addressing a BURS media engagement Makgolo said that the situation is worrying because they had done intensive engagements with taxpayers in outreach programmes. She said in the financial year that ended in March, they had planned to visit 22 villages across Botswana but ended up visiting 25 for public education.
She revealed that government has not been able to issue employees with tax certificates that enable them to file their returns because of system problems. “Probably most of the numbers that have come forth yet, are from government’s employ,” she said.
Makgolo said when she joined the Revenue Service two years ago, she committed to the transformation of BURS, to strategically position the organisation to succeed in achieving its mandate that is mainly three- pronged.
First, is to mobilise domestic revenue, requiring the Revenue Service to collect revenue for funding Government programmes. She explained that about 70 percent of budgeted expenditure funding is expected from BURS. Secondly, Makgolo said they are responsible for border management, which places them with the responsibility to protect citizens against harmful and illicit products. Thirdly, facilitation of trade, which means ensuring seamless movement of goods and people across borders. According to Makgolo, considering the importance of revenue collection to the country’s fiscus, the BURS has devised a revenue mobilisation strategy whose main focus areas include; collection of outstanding returns and overdue payment across all tax types particularly VAT and PAYE which are supposed to be submitted with payment.
They have also intensified debt collection focusing on issuing final demands to defaulters, increasing targeted audit interventions, deployment of the BURS Multi- Disciplinary teams to inspect all business operations especially cash businesses across the country to ascertain tax compliance by companies, professionals and individuals.
The BURS has also strengthened monitoring of high risk and high value customs consignments to close revenue leakages, as well as enforcing stringent controls on all bonded warehouses.
In addition, Makgolo said they have intensified physical searches at all commercial border posts and international airports. They have also deployed strategic tactical intervention teams, canine and flexible anti- smuggling teams, to deal with customs officers on clearance procedures to detect fraud and improper application of customs laws. They have also developed and implemented the e- service strategy and automated all manual payments. “In this period BURS has made successful busts at our ports of entry, key to this is the drug busts of substances like dagga, cocaine, among others. This is very important for the protection of our citizens against such prohibited substances which were obviously destined for consumption by our citizens,” she said.
According to Makgolo, BURS has initiated the re- development of Martin’s Drift border post and its related works. It is anticipated that the project will take off shortly. She said plans are ongoing to convert the Mamuno border post into a One- stop border post, following the other developments at the same facility that saw it operating on a 24- hour basis and it was also the place where the use of Omang cards by citizens of both countries to travel between Botswana and Namibia was launched.
Meanwhile, BURS has received international accolades in recognition of the innovation and enhanced customer- centric service. The two awards that were received at the Africa Climate Summit/ Africa Climate Week in Nairobi, Kenya recently include; the Best Use of Technology to revolutionise Customer Experience, as well as the Public Sector Woman of the Year award, that was awarded to the BURS Commissioner General.