In a bold move to bolster state coffers and level the playing field, the Botswana Unified Revenue Service (BURS) is set to cast its tax net over the burgeoning digital economy by September. The introduction of Value Added Tax (VAT) on digital trade marks a significant step towards modernising Botswana’s tax system and capturing revenue from previously untaxed online transactions.
Speaking at a recent press briefing in the capital, BURS Board Chairperson Dr Lesedi Senatla underscored the pressing need to bring online businesses into the tax fold. “The digital economy is no longer a fringe phenomenon; it’s a significant and expanding part of our economic landscape, and it cannot remain outside the tax net,” he asserted. “This VAT on digital trade initiative is a deliberate and necessary step to ensure fairness between traditional brick-and-mortar businesses and their online counterparts, while also broadening our national tax base in an increasingly digital world.”
But the taxman’s ambitions don’t end there. Dr Senatla also unveiled a raft of technological upgrades aimed at tightening tax administration and boosting compliance. Headlining this digital overhaul is the introduction of an Electronic VAT Invoicing Solution, slated to be operational by March 2026. This cutting-edge system promises real-time tracking of VAT transactions, a powerful tool in the fight against fraud and a means to optimise revenue collection with unprecedented efficiency. “This project is a game changer for us,” Dr Senatla declared. “It will not only enhance compliance and benefit businesses through improved accuracy in their VAT processes but will ultimately ensure we are capturing VAT revenue as it happens.”
Adding another layer to their compliance strategy, BURS is also developing a fiscal marking and monitoring solution, widely known as “track and trace,” expected to be completed by September this year. This system is specifically designed to clamp down on the illicit trade of excisable goods, such as alcohol and tobacco, a persistent drain on government revenue. “This solution will enforce compliance with excise regulations, protect consumers from potentially harmful illicit products, and secure vital government revenue while minimising disruptions to legitimate businesses,” Dr Senatla explained.
Meanwhile, BURS Commissioner General Jeanette Makgolo painted a broader picture of the revenue authority’s ambitions, outlining a comprehensive five-year transformation agenda dubbed “Delta – Exploring Untapped Revenue Streams.” This ambitious plan sets a target of collecting a staggering P120 billion by March 2029.
Acknowledging the headwinds facing the traditional economy, Makgolo stated, “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. We responded proactively with a multifaceted Revenue Mobilisation Strategy rooted in actionable steps that directly impact our daily operations.”
This strategy includes the establishment of several internal task forces: a Revenue Management Committee, a Revenue Mobilisation Committee, and a Revenue Collection War Room. These structures are designed to provide real-time performance monitoring and enable swift interventions to address any revenue shortfalls. “These structures allow for timely decisions, daily strategising, and focused implementation to maximise revenue collection and close any tax loopholes,” Makgolo emphasised. “Our intent is not just to collect more; it is to collect smarter, leveraging technology and strategic oversight to ensure all due revenue is captured.”
As Botswana navigates the complexities of a rapidly evolving economic landscape, BURS’s proactive embrace of digital taxation and technological innovation signals a determined effort to secure the nation’s financial future and ensure a more equitable tax system for all.
Sidebar:
Thirsty Nation Fuels Import Bill
Botswana’s appetite for imported food and beverages remains robust, with nearly P1 billion worth of such goods flooding into the country in January 2025 alone. This figure represents a significant 16.4 percent of the nation’s total imports for the month, which stood at P6.6 billion.
According to the “Botswana Food & Beverages Imports (for January 2025)” report, beverages, spirits & vinegar, along with cereals, topped the import charts, accounting for 20.2 percent and 17.1 percent respectively of the food and beverage category. Sugars and sugar confectionery followed, contributing 9.3 percent.
The report highlighted the nation’s particular thirst for alcoholic drinks, noting that “Beverages, Spirits and Vinegar was the most prominent commodity imported.” Beer made from malt was the single largest beverage import, accounting for a hefty 37 percent of the category. Other fermented drinks, including cider, mead, and sake, also saw significant demand, making up 24.3 percent. Sweetened and flavoured waters, including popular aerated soft drinks, contributed another 16.2 percent to the beverage import bill.
On the food front, cereals were the second-largest import category. “Other Maize (Corn)” dominated cereal imports, accounting for 44.9 percent, followed by grain sorghum at 23.9 percent.
These figures underscore Botswana’s continued reliance on foreign sources for essential food and drink products, raising pertinent questions about the country’s domestic production capacity and long-term food security strategies.
