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08 February 2018

Botswana issues 2018 Budget

On 5 February 2018, Botswana's Minister of Finance & Development Planning (the Minister), Honorable O. K Matambo, presented the 2018 budget speech to Parliament.

The 2018-2019 budget proposals are part of the Government's efforts to achieve the goals and aspirations of the Eleventh National Development Plan (NDP 11),1 and build on the prior year proposals with the following priority areas:

  • Promoting growth and economic diversification
  • Investing in human capital for building an inclusive society
  • Maintaining a sustainable fiscal policy

In light of a reported global growth of 3.9% and steady regional growth, the domestic economy is forecasted to grow by an average of 5.3% annually during NDP 11.

The economy continues to enjoy a positive credit rating with respect to its macro-economic fundamentals.

With respect to tax measures, the Minister reported on the ongoing drafting of:

  • The Tax Administration Act to simplify the Income Tax Act and Value Added Tax (VAT) Act
  • Transfer pricing rules

In addition the Minister announced the review of:

  • Rules governing the Botswana International Financial Services Centre to benchmark it against international standards and remove any perceptions that Botswana is a tax haven.
  • The Financial Intelligence Act in light of the findings of the Mutual Evaluation Review for Botswana by the Eastern and Southern Africa Anti-Money Laundering Group.

The plan is to finalize both processes during the 2018 financial year.

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ENDNOTE

1 See EY Global Tax Alert, Botswana's 2017 budget speech highlights proposed tax changes, dated 9 February 2017.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young Management Services (Pty) Ltd, Gaborone

  • Bakani Ndwapi
    bakani.ndwapi@za.ey.com
  • Thomas Chitambo
    thomas.chitambo@za.ey.com
  • Cleverent Mhandu
    cleverent.mhandu@za.ey.com
  • Gladys Makachiwa
    gladys.makachiwa@za.ey.com

Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London

  • Rendani Neluvhalani
    rendani.mabel.neluvhalani@uk.ey.com
  • Byron Thomas
    bthomas4@uk.ey.com

Ernst & Young LLP, Pan African Tax Desk, New York

  • Silke Mattern
    silke.mattern@ey.com
  • Dele A. Olaogun
    dele.olaogun@ey.com
  • Jacob Shipalane
    jacob.shipalane1@ey.com

Ernst & Young LLP, Pan African Tax Desk, Houston

  • Elvis Ngwa
    elvis.ngwa@ey.com

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ATTACHMENT

PDF version of this Tax Alert

Document ID: 2018-5263

 
 

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