Sello Motseta
7th March 2024
Government has set the Botswana Unified Revenue Service(BURS) an ambitious target of collecting P70.576 billion revenues in the forthcoming financial year. This ambitious target follows the decline in the growth of domestic economy which was mainly driven by significant diminished demand and low prices for our diamonds.
As at end of February 2024, Revenue collections stood at P51.727 billion falling short of the target of P55.252 by P3.525 billion(6.38%)for the ended February 2024.
“In efforts to redeem our collections BURS has devised strategies to bridge the gap in the remaining weeks of the financial year,” said Jeanette Makgolo, Commissioner General at Botswana Unified Revenue Service(BURS).
In the 2023/24 Financial Year the initial revenue target was set at P60.494 billion. BURS revenue collections accounted for 76% of the required funding for the annual budget.
During the February Budget Speech, the target was revised to P59.882 billion following the decline in the growth of domestic economy which was mainly driven by significant diminished demand and low prices for our diamonds.
“As at end of February 2024, Revenue collections stood at P51.727 billion falling short of the target of P55.252 by P3.525 billion (6.38%)for the ended February 2024,” said Makgolo.
The 2024/25 revenue target for BURS is P70.576 billion. It represents an increase of P10.694 billion (17.86%) as compared to the 2023/24 revised budget of P59.882 billion.
Makgolo, said “You may note that this a tall order that requires BURS to make the most of out a suite of reforms and strategies to improve operational efficiency and voluntary tax and Customs compliance.”
Government expects BURS to step up its revenue maximisation drive by expanding revenue base and reforming tax laws to improve operational efficiencies.
BURS will therefore introduce an 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.
Implementation of Electronic Invoicing (E-Billing) for efficient VAT collection – Efforts to identify suitable expert resources are ongoing. 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.
Implementation of Fiscal Marking and Monitoring Solution for Excisable products – 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,” said Makgolo.
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,” said Makgolo.
BURS has also adopted several initiatives geared towards facilitating seamless movement of goods and raw materials necessary for industrialisation. These include the adoption of the One Stop Border Post Model, that has been implemented successfully at Kazungula Bridge Border Post and working towards establishing the same at Mamuno border.
“We have also introduced the Authorized Economic Operator programme to recognize and convey preferential treatment of our compliant traders at the borders,” said Makgolo.
