10 Apr 2025

Botswana Unified Revenue Service (BURS) has exceeded its revenue target for the 2024/25 financial year, collecting a record P61.097 billion in net tax revenue, surpassing the goal of P58.704 billion. 

This achievement, marking a 4.08 per cent overachievement, is the highest in BURS’s history.

At a press briefing in Gaborone yesterday, BURS Commissioner General, Ms Jeanette Makgolo, attributed the success to effective strategy, institutional commitment and national collaboration.

However, she acknowledged the challenging economic environment, which saw a 3 per cent decline in the country’s GDP in 2024, highlighting the critical importance of domestic resource mobilisation.

Ms Makgolo explained that the surplus was largely driven by strong performances in Value Added Tax (VAT) and Southern African Customs Union (SACU) receipts.

“VAT exceeded its target by 28.15 per cent, collecting P14.455 billion compared to the projected P11.280 billion while SACU receipts also surpassed expectations, reaching P27.566 billion, P855 million above the target,” she said.

Ms Makgolo credited the VAT success to resilient domestic consumption and SACU’s positive performance to favourable exchange rates.

However, Income Tax collections fell short by P1.745 billion, with P18.968 billion collected against a target of P20.714 billion. This shortfall, she said was attributed to challenges in the mining sector, including declining global demand for diamonds, unfavourable prices, stockpiling by dealers as well as subdued domestic business profits.

Ms Makgolo said BURS’s Strategic Plan for 2024–2029 aims to mobilise P120 billion by March 2029 through diversification and modernisation of tax collection mechanisms.

The plan, she said, focused on closing tax gaps, improving compliance and introducing new revenue streams.

“Despite the economic downturn, we could not afford to sit back,” she said, stressing the proactive approach through interventions like the creation of oversight bodies such as the Revenue Management Committee and Revenue Collection War Room.

BURS also launched the Multi-Disciplinary Block Management Unit to inspect businesses nationwide for tax compliance, particularly targeting the cash economy. She said the agency also intensified its efforts with physical inspections at borders and airports, along with deploying anti-smuggling teams.

Additionally, mobile tax units were introduced to deliver services and educate taxpayers in remote areas.

As the 2025/26 financial year approaches, BURS faces a new target of P60.475 billion. To meet this goal, she said BURS plans to implement further reforms, including the introduction of a track-and-trace system for excisable goods, a transit monitoring system to prevent dumping and an electronic VAT invoicing system. BURS also intends to introduce VAT on digital platforms, a significant step to bring the growing digital economy into the tax net and expanded taxpayer education will also play a critical role in improving compliance.

Beyond revenue collection, Ms Makgolo said BURS also played an important role in facilitating trade. 

The Authorised Economic Operator (AEO) programme, launched in 2023, offered preferential treatment to compliant traders. To date, she said five businesses had been accredited, with three more pending. Ms Makgolo explained that the programme accelerated customs procedures and incentivised tax compliance.

Meanwhile, Dr Lesedi Senatla, Chairperson of the BURS Board, stressed on the strategic importance of revenue collection in the current economic climate.

Dr Senatla highlighted that BURS’s role was not only essential for financing the national budget but also for managing borders and facilitating trade. 

He said the agency’s ability to exceed revenue targets, despite economic challenges, provides crucial funding for social programmes.

Looking ahead, Dr Senatla reiterated the government’s commitment to expanding the domestic tax base, with BURS tasked with collecting over P60 billion in the current financial year. He also shed light on ongoing efforts to improve operational efficiency, including the review of key tax legislation and the taxation of digital platforms. ENDS