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February 12, 2019
Botswana issues 2019 budget
On 4 February 2019, Botswana’s Minister of Finance & Development Planning (the Minister), the Honorable O. K Matambo, presented the 2019 budget to Parliament.
This Alert outlines the key proposals.
The 2019/2020 budget proposals emphasize the need for Botswana to consolidate development gains for further economic development. According to the Minister, this will be achieved through:
Through the above agenda items, the domestic economy growth rate is forecasted to be 4.5% (2018) and 4.2% (2019) against the global growth rates of 3.5% and 3.6% for 2019 and 2020 respectively.
The Minister confirmed that Botswana continues on a trajectory towards becoming a fully-fledged upper middle income economy.
The Minister reported on the passage of the following Acts:
There is a commitment to conclude the amendments to the Transfer duty Bill and Trade Act during 2019.
In addition, the Minister confirmed the publication of the Income Tax (Amendment) Act, 2018 – Act No.38 of 2018 amending the anti-avoidance provisions and introducing Transfer Pricing (TP) legislation. The effective date of the legislation is 1 July 2019.
Key features of the amendments include:
For the complete budget speech go to www.finance.gov.bw.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Advisory Services (Pty) Ltd, Gaborone
Ernst & Young Advisory Services (Pty) Ltd., Africa ITS Leader, Johannesburg
Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London
Ernst & Young LLP, Pan African Tax Desk, New York