New tax drive targets digital economy as BURS pushes for P120 billion by 2029
TLOTLO KEBINAKGABO
In a landmark effort to capture revenue from the fast-growing digital economy, Botswana Unified Revenue Service (BURS) will introduce Value Added Tax (VAT) on digital trade by September this year.
Announcing this in a press briefing in Gaborone recently, the Board Chairperson of BURS, Dr Lesedi Senatla, emphasised the urgency of levelling the tax playing field between traditional and online businesses.
“The digital economy has grown significantly and cannot remain outside the tax net,” he said. “The VAT on digital trade initiative is a deliberate step to ensure fairness and to broaden our tax base in an increasingly digital landscape.”
Real-time tracking
Dr Senatla also outlined additional strategies being rolled out to bolster tax administration and improve compliance. These include introduction of an Electronic VAT Invoicing Solution, which is expected to be operational by March 2026.
The system will enable real-time tracking of VAT transactions to minimise fraud and optimise revenue collection. “This project is a game changer,” Dr Senatla said. “It will enhance compliance, benefit businesses through improved accuracy, and ultimately ensure we are capturing VAT revenue in real time.”
A complementary initiative, the fiscal marking and monitoring solution – widely known as “track and trace” – is also in development and scheduled for completion in September 2025. The system is designed to combat illicit trade in excisable goods such as alcohol and tobacco.
Gloomy cloud
“This solution will enforce compliance with excise regulations, protect consumers, and secure government revenue while minimising disruptions to legitimate businesses,” Dr Senatla explained.
Also at the presser, the Commissioner General of BURS, Jeanette Makgolo, presented a broader five-year transformation agenda under the theme “Delta – Exploring Untapped Revenue Streams,” which targets the collection of P120 billion by March 2029.
“While a gloomy cloud hangs over our economy due to the underperformance of traditional revenue streams, as BURS we could not afford to sit back in despair,” Makgolo said. “We responded with a multifaceted Revenue Mobilisation Strategy rooted in actionable steps that directly impact operations.”
Tax War Room
The strategy includes establishment of a Revenue Management Committee, a Revenue Mobilisation Committee, and a Revenue Collection War Room – all designed to monitor performance and drive real-time interventions.
“These structures allow for timely decisions, daily strategising, and focused implementation to maximise revenue collection and close any tax gaps,” Makgolo said. “Our intent is not just to collect more but to collect smarter.”