BURS aims to collect P3.5bn by end of financial year
Made revenue collections of P51.7 bn, against P55.2bn target
Botswana Revenue Services ( BURS) is currently facing a deficit of approximately P3.5 billion to meet its intended goal of P59 billion and is actively exploring all possible channels to bolster tax revenues and bridge the gap.
In a forthright manner, Jeanette Makgolo, the Commissioner General of BURS, disclosed this during an informal discussion with the media, an avenue provided by the organisation to disseminate information and educate the public on matters pertaining to the nation’s tax collecting authority. Makgolo divulged that by the conclusion of February 2024, revenue collections amounted to P51.727 billion, falling short of the targeted P55.252 billion by P3.525 billion, constituting a 6.38 percent deficit for the period ending February 2024. In an appeal to both the nation and the media regarding the significance of compliance, Makgolo emphasised, “I implore all of you, in the spirit of cooperation, to unite in ensuring and maintaining revenue stability, vital for the necessary growth and development to enhance the quality of life in Botswana. “I urge you to consistently encourage taxpayers and traders to utilise the technological platforms we have provided to fulfil their tax and customs responsibilities.”
Regarding revenue performance, Makgolo said government continues to rely on the Revenue Service to generate essential tax revenues for financing national projects and initiatives. She said they have embraced this challenge with determination and are prepared to contribute to the country’s development and the wellbeing of its citizens.
For the fiscal year 2023/ 24, the initial revenue objective was set at P60.494 billion, representing 76 percent of the required funding for the annual budget. However, during the February Budget Speech, this target was revised to P59.882 billion due to the slowdown in domestic economic growth, primarily attributed to reduced demand and a fall in diamond prices. Makgolo disclosed that in attempts to improve collections, BURS has formulated strategies to narrow the gap in the remaining weeks of the fiscal year. She said the 2024/ 25 revenue target for BURS is P70.576 billion, representing an increase of P10.694 billion or 17.86 percent as compared to the 2023/ 24 revised budget of P59.882 billion. “This is a tall order that requires BURS to make the most out of the reforms and strategies to improve operational efficiency and voluntary tax and customs compliance”. She added that the Minister of Finance, Peggy Serame has put a demand on BURS to step up its revenue maximisation drive by expanding revenue base and reforming tax laws to improve operational efficiencies. “To be precise the budget speech outlined the following key initiatives that the Revenue service will undertake to broaden the tax base, close leakages and maximise revenue.” The implementation progress of the initiatives includes introduction of effective legal basis for taxation of digital sales of products and services requiring remote service suppliers to charge VAT on procurement of these services by individuals and other exempt entities and remit to BURS.
The legislative bills proposing inclusion of taxation of the digital sales of products and services by remote service suppliers has been drafted and expected to be presented to parliament in the July 2024 Parliamentary sitting. As far as Implementation of Electronic Invoicing ( E- Billing) for efficient VAT collection is concerned, efforts to identify suitable expert resources are ongoing. According to her, BURS has requested Technical Assistance from UNDP to finalise specifications for project delivery, and some BURS officers have been sent for job shadowing at a sister Revenue administration that has successfully implemented the VAT e- billing solution. She said the project on introduction of Fiscal Marking and Monitoring Solution for Excisable products aimed at enabling the marking, scanning and authentication of all tobacco and alcohol excisable goods is ongoing.
“Following continuous engagements with the stakeholders and the appointed solution provider to facilitate the Design of the Solution during the year 2023/ 2024, it is expected that the solution will be implemented during the year 2024/ 2025.”
Noting the importance of a National Single Window ( NSW) in customs and trade towards streamlining and simplification of cross- border trade processes, BURS as the Lead Agency on the development of a National Single Window in Botswana, undertook a National Single Window Readiness Assessment with technical support from the World Customs Organisation ( WCO).
“We are currently developing an implementation strategy with other related agencies, leveraging on the findings and recommendations of the report,” she said.