The private sector has been cautioned to brace up for more taxes and penalties as the Ministry of Finance is expected to table new pieces of legislations that will have major tax implications on businesses.
The new laws will revise the Value Added Tax Act of 2025, introduce a new personal income tax band, amend the Customs Act and a three percent hike on corporate tax.
Andersen In Botswana Managing Partner, Craig Granville unpacked some of the rift changes during Access Bank’s post Budget review held in Francistown last Friday.
“We are witnessing the largest tax reforms ever implemented in Botswana. Implementation of these reforms are expected to start from 1 July 2026”, noted Granville.
He urged business owners to move swiftly in reviewing their tax positions, cash flow projections and strategies for long term investment.
Granville described the measures as a structural shift in Botswana’s fiscal framework aimed at strengthening revenue mobilization amid growing national expenditure.
“As business owners I advise you to put up working system, to avoid penalties and interests. Otherwise, you will lose loads of money. Get ready, learn more of these taxes and what they mean to your business, cash flow and profits. You need to adapt to navigate the new fiscal year with confidence, from tax implications to payroll adjustments,” he advised.
According to him, the tax reforms are calling for more compliance, tax audits and reviews. “Government is widening its revenue base. Also, key words in the budget such as efficiency of tax administration simply means increased reporting requirements of tax payers, tighter deadlines and additional penalties.”
He said electronic invoicing at the point of sale will be operational as beginning April. “Every sale made from any business will be transmitted to Botswana Unified Revenue Services (BURS) automatically. This is real time VAT on sales raised. The system is in place and working. Brace up for all these changes”, highlighted the tax expert.
He forewarned the business sector that BURS is already building capacity to carry out audits and investigations.
“BURS has taken in about 20 trainees in their audit section, and yes the taxman’s systems are working better than before,” continued Granville.
He said these developments signal a more disciplined and revenue focused fiscal environment, positioning compliance, strategic tax planning and corporate agility as critical success factors in the new economic landscape.
